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A win for everyone

Posted on by Rachel Ravencraft

By Paul Bleiberg, Executive Vice President, Government Relations, National Milk Producers Federation

Amid a frenetic daily pace in Washington, Congress is slowly moving toward renewing the provisions of the Tax Cuts and Jobs Act of 2017, a major tax legislation that President Trump signed into law during his first year in office. The provisions are due to expire this year. The House and Senate have each approved their blueprints for the plan, but challenging negotiations lie ahead.

The National Milk Producers Federation is focusing attention on one piece: The Section 199A deduction, which is vital to dairy farmers and the cooperatives they own and merits being made permanent in this year’s tax law.

Section 199(A) of the Internal Revenue Code, known as the Qualified Business Income Deduction, was enacted in the 2017 tax law. It provides an up to 20% deduction on qualified business income for certain pass-through entities. It includes the benefits previously afforded to agricultural cooperatives under the earlier Section 199 tax deduction for domestic production. Dairy cooperatives benefit through their domestic manufacturing activity; they can either pass the deduction directly back to their member-owners or reinvest it into the cooperative.

This important public policy boosts economic stability in rural America, but it wasn’t an easy road to this point. Early in 2017, congressional tax writers indicated they were likely to repeal the previous Section 199 that dairy cooperatives had used for many years. Congress believed the previous provision would be redundant because most of the domestic manufacturers that had benefited from it would now benefit from the planned reduction in the corporate tax rate.

This would not have been the case for cooperatives, which don’t file taxes as corporations. Accordingly, farmers were staring down a significant tax increase, so NMPF got to work making a case for the important role Section 199 played in helping ag cooperatives stay competitive in today’s marketplace. House members wrote letters, Senators filed amendments, and stakeholders spoke loudly and in unison in support of preserving the benefits of Section 199.

The result of agriculture’s united efforts was the inclusion of farmer-owned cooperatives in the new Section 199A deduction. Letting it expire this year would raise taxes on dairy farmers and the cooperatives they own while other businesses enjoy continued tax relief. Congress should make this important deduction permanent to maintain certainty for producers and help them prosper in the coming years.

As dairy prepares for the hard work that lies ahead, the agriculture community is again speaking with one voice. NMPF is grateful to the many producer associations, cooperatives, and agricultural partners that have joined a letter in support of making Section 199(A) permanent in this year’s tax legislation. This early strong showing underscores the consensus behind continuing this key policy — a consensus that will be essential to getting the job done.

This column originally appeared in Hoard’s Dairyman Intel on March 27, 2025.

NMPF’s Galen Explains Importance of DMC Signup in 2025

Posted on by Chris Galen

NMPF’s senior vice president Chris Galen discusses why farmers not already enrolled in the Dairy Margin Coverage program should consider using the risk management tool this year. DMC is one of several options, including Livestock Gross Margin and Dairy Revenue Protection programs, that can be used in tandem.  The deadline for producers to sign up for the USDA program is Monday, March 31.

Time Running Out for Dairy Farmers to Sign Up for Dairy Margin Coverage

Posted on by Theresa Sweeney

In a recent interview, NMPF Senior Director of Communications and Outreach Theresa Sweeney-Murphy highlighted the importance of the USDA’s Dairy Margin Coverage (DMC) program as a crucial risk management tool for dairy farmers. With enrollment open through March 31, DMC helps protect farmers from unpredictable milk and feed prices by providing payments when margins fall below selected coverage levels.

Sweeney-Murphy discussed recent updates to the program, including improved feed-cost calculations that now fully account for premium alfalfa hay, ensuring payments more accurately reflect real-world expenses. She also emphasized the program’s flexible coverage options and how it can be paired with Dairy Revenue Protection (DRP) and Livestock Gross Margin—Dairy (LGM-Dairy) for added financial security.

Farmers can enroll by visiting their local USDA Farm Service Agency office, where staff can help them navigate their coverage options before the March 31 deadline.

Dairy’s Pronounced Advantage Over Plant-Based Alternatives

Posted on by Rachel Ravencraft

“This is a list of ingredients from foods — carrageenan, riboflavin, monosodium glutamate and 20 others that I can’t pronounce.” – HHS Secretary Robert F. Kennedy Jr.

This column isn’t here to call out specific food ingredients — carrageenan, for example, has made many an ice cream pint hold together well, proving the value of the raw seaweed extract. But if the idea is to take a more critical look at food ingredients that sound more like science experiments gone bad than healthy, nutritious products, we might just offer one helpful hint: Take a look at the plant-based “dairy” substitutes section and see what you find.

It takes a lot of substances to turn a slurry of chemicals, emollients, emulsifiers, additives and colorings — plus few almonds, oats, etc. — into something that looks like a dairy product. Things like, “mixed tocopherols.” Or “gellan gum,” (which, admittedly, is used in ice cream if you want it to stay stable when placed in flaming alcohol). Or “calcium disodium edta,” (which is also good at treating lead poisoning), among others.

Again, not casting aspersions on anything, just noting that your grandmother probably didn’t talk much about these ingredients over Thanksgiving dinner. Meanwhile, milk is made of… milk, with some vitamin fortification that dates back nearly a century. Cheese is made of… milk, with some additives that follow processes developed over generations. And other dairy products are made of… milk, with whatever else helps keep it safe and stable for consumers who are, in the end, experiencing the same nutrition and wholeness their forebears would have recognized in earlier, less pronunciation-challenged times.

This revelation isn’t anything new: In fact, Dairy Defined did a whole quiz on this theme in 2022 that’s still fun to complete. But it bears repeating as food policy gets a new look. Plant-based products or products derived from the fermentation of a fungus that are engineered to superficially resemble dairy are, by definition, imitations or (poor) substitutes of something that was already out there, already serving a public that understood what it did and what was in it. But in this case, the imposters want to call their product the same thing as the real thing, implying equivalencies in nutrition that just aren’t there and creating confusion in the marketplace.

And that needs to stop.

The last three FDA commissioners, serving both Republicans and Democrats, all recognized the problem — all that’s left is action. Regardless of one’s feelings about specific ingredients or the values they bring to specific foods, being transparent about what something is and what it isn’t, is an important principle from which to build.

Truth in labeling. Not hard to say. And long past time to do.

USDEC and NMPF Sign Partnership with Guatemalan Dairy Association

Posted on by Rachel Ravencraft

The U.S. Dairy Export Council (USDEC), National Milk Producers Federation (NMPF), and Guatemalan Dairy Development Association (ASODEL), signed a memorandum of understanding yesterday that will strengthen ties between the U.S. and Guatemalan dairy industries as they advocate for free and fair trade policies and promote greater dairy consumption.

The agreement outlines objectives aimed at strengthening communication and knowledge-sharing between the two industries, underscoring the economic and social significance of the dairy sector, and addressing trade barriers that negatively impact both producers and consumers alike.

The agreement outlines objectives aimed at strengthening communication and knowledge-sharing between the two industries, underscoring the economic and social significance of the dairy sector, and addressing trade barriers that negatively impact both producers and consumers alike.

“This agreement marks an important milestone in the U.S. dairy industry’s ongoing dedication to collaborating with and supporting our partners in Guatemala and throughout Latin America,” said Krysta Harden, president and CEO of USDEC. “A strong trade relationship benefits both U.S. and Guatemalan dairy sectors, and it’s clear that imposing misguided trade barriers harms everyone, particularly Guatemalan consumers. We are excited to work together to continue to build a strong partnership between our two industries.”

“The U.S. and Guatemalan dairy sectors share values and common goals,” said Gregg Doud, president and CEO of NMPF. “We’re thrilled to collaborate with ASODEL to champion effective, forward-thinking policies that will strengthen the dairy industry in the Americas and globally.”

“ASODEL is dedicated to improving the competitiveness and long-term viability of the Guatemala dairy industry,” said Ramiro Pérez, director general of ASODEL. “This collaboration with USDEC and NMPF strengthens our capacity to fulfill that mission, supporting not only our members but also Guatemalan consumers who rely on both domestic and imported dairy products.”

The agreement complements similar agreements USDEC and NMPF have made throughout Latin America, including with the Colombian Association of Dairy Industry (Asoleche), Sociedad Rural Argentina, the Inter-American Institute for Cooperation on Agriculture (IICA) and the Chilean Federacion Nacional de Productores de Leche (Fedeleche).

Expanded resources benefit farmers

Posted on by Rachel Ravencraft

By Nicole Ayache, Chief Sustainability Officer, National Milk Producers Federation

The National Dairy Farmers Assuring Responsible Management (FARM) Program launched FARM Environmental Stewardship (ES) Version 3 late last year, using the latest science and technology to support producers in assessing sustainability opportunities that align with their business goals. Since its launch, the FARM Program has developed additional training and guidance materials to help participants better understand FARM ES Version 3.

The Version 3 User Guide was released last month. It provides key information about the evaluation tool and details the data inputs of an evaluation to foster consistency and confidence in data collection. The guide dedicates a chapter to interpreting outputs from the Version 3 assessment to support accurate interpretations of greenhouse gas (GHG) emissions footprints.

FARM ES launched a self-paced, online evaluator training course that covers the core elements of an evaluation and is required for certification. Advanced training sessions are available for evaluators looking to deepen their expertise. Each session addresses key areas of the evaluation process, such as data inputs, interpreting results, and available resources. Sessions also explore the new scenario analysis function of the Version 3 evaluation tool, so evaluators can better support farmers in using this new functionality to inform decision-making.

The program area will also offer a Prep Guide, outlining steps producers can take to prepare for an on-farm evaluation. Both the recently published User Guide and the forthcoming Prep Guide share information on expectations and best practices for completing an evaluation.
FARM ES Version 3 enables robust scenario analysis so a farm can analyze the effects of potential management or practice changes, including the potential effect on milk productivity as well as greenhouse gas (GHG) emissions. The Ruminant Farm Systems (RuFaS) model, which powers the Version 3 evaluation tool, incorporates cutting-edge research to model a whole-farm system. Through this process, FARM ES results can highlight potential opportunities for improved efficiency and cost savings.

FARM ES is working on expanded capabilities for the evaluation tool, such as making it easier to run what-if scenarios by offering preset options. FARM ES will also incorporate scientific updates from the RuFaS model over time. The economic module coming to RuFaS, for example, will offer FARM ES users the option to run a partial-budget analysis when reviewing scenario results.

The FARM Program continues its mission of fostering a culture of continuous improvement by providing farmers with tools and resources for on-farm best management practices. The FARM ES tool provides a unified platform built by and for the U.S. dairy community, powered by peer-reviewed credible science. U.S. dairy farmers are actively involved in shaping the FARM ES Program. It unifies industry response to customer requests for sustainability data, helping to streamline sustainability measurements into one program.

For more information on FARM Environmental Stewardship, please visit nationaldairyfarm.com.

This column originally appeared in Hoard’s Dairyman Intel on March 17, 2025.

Lactose-Free Milk Makes Schoolkids Smile

Posted on by Rachel Ravencraft

Jessica Shelly is the Director of Student Dining Services for Cincinnati Public Schools in Cincinnati, Ohio. She’s responsible for overseeing the service of more than 60,000 meals a day in the lunchroom operations at 65 schools.

And in 2023, her school system tried something different: It offered its students lactose-free milk. The hugely successful pilot project has now been adopted district-wide, improving nutrition, boosting school lunch participation and reducing food waste. The Cincinnati model points to a promising path for milk in schools, as student bodies become more diverse and millions of children rely on school meals as their main nutrition source for the day.

“These are kids who may not be able to go home to a refrigerator full of food, and so it’s our job to make sure that we are providing them with the most healthy and nutritious meals possible when they’re here with us at school,” she said. “Part of that is making sure they have all the nutrients and protein they need, and we know that milk plays a large role in that.”

For more of the Dairy Defined podcast, you can find and subscribe to the podcast on Apple Podcasts, Spotify and Amazon Music under the podcast name “Dairy Defined.”

Farmers Ready to Face Policy Challenges, NMPF Farmers Say at Board Meeting

Posted on by Theresa Sweeney

Dairy farmers from across the nation celebrated fairer milk prices for farmers and pledged to work together to meet challenges on labor, trade and other issues at the National Milk Producers Federation’s Board of Directors meeting, which concluded today.

“We’re in a fast-moving environment, with a new administration and things changing every day,” said NMPF Board Chairman Randy Mooney, a farmer from Rogersville, MO, in remarks at the meeting. “We are happy to have NMPF watching out for us here in Washington.”

NMPF’s board meeting brought together more than 50 farmers and dairy-cooperative leaders at the nation’s largest dairy farmer trade organization, which serves as the policy voice for dairy farmers and the cooperatives they own in Washington.

Dairy farmers at the meeting heard presentations updating pressing dairy issues, including agricultural labor, trade and H5N1 bird flu, which has now been circulating in dairy cattle for roughly one year. Milk producers also celebrated a policy win – nationwide adoption of a new Federal Milk Marketing Order that begins taking effect on June 1. The plan, spearheaded by NMPF, culminates a four-year process of seeking fairer pricing for farmers and cooperatives.

“The top two issues we have today are immigration and tariffs,” Mooney said. “Nothing else means anything else to us if we don’t have anyone to milk our cows.” On trade, he said day-to-day turbulence doesn’t change dairy’s commitment to building exports. “We intend to play in the world market, and we will invest in the world market to do it,” he said.

NMPF’s board also charted a path toward a successor organization to the Cooperatives Working Together export assistance program, which has helped dairy build overseas markets. Reflecting that reformation, the board voted to rename the program NEXT (NMPF Exports & Trade) while authorizing a new business plan for final approval in June. The board also welcomed two new directors:

  • Mark Leichtfuss of FarmFirst Dairy Cooperative in Wisconsin, and;
  • Richard Hill of Upstate Niagara Cooperative in New York.

The board also created the Dr. Peter Vitaliano Legacy Scholarship as part of NMPF’s National Dairy Leadership Scholarship Program. The award, named for a recently retired longtime NMPF economist, will be used to help support a student who demonstrates attributes exemplified by Dr. Vitaliano to honor his decades of commitment to the success of U.S. dairy producers and cooperatives.

Dairy Organizations Urge Intensified Negotiations to Restore Trade Flows

Posted on by Theresa Sweeney

Leaders from the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) released the following statements today in response to retaliatory measures announced by Mexico, Canada and China.

“The President believes tariffs are necessary to address the opioid crisis in the United States. We urge Mexico and Canada to take U.S. concerns seriously,” said Gregg Doud, President and CEO of NMPF. “Mexico and Canada are valuable trading partners that American agriculture depends on, and trade with those countries is critical to the well-being of dairy farmers. Let’s focus on getting the concerns ironed out quickly so we can focus on bolstering these critical trade relationships. Then, let’s put those tariff tools to work, driving change with the trading partner that’s brushed off U.S. concerns for far too long – the European Union.”

“Exports are fundamental to the health of the U.S. dairy industry. One day’s worth of milk production out of every six is destined for international consumers and U.S. dairy sales to Mexico, Canada and China account for 51% of our total global exports. That’s a lot at stake,” said Krysta Harden, President and CEO of USDEC. “Dairy farmers and manufacturers are counting on a swift resolution to this impasse and urge a redoubling of efforts at the negotiating table to find a workable way forward that addresses U.S. national security concerns while also preserving export flows that are vital to supporting American farmers and workers. We’re eager to focus on working with the Administration on expanding global opportunities for American dairy products in ways that build on the existing base of sales to our trading partners.”

NMPF Board of Directors Announces Vitaliano Legacy Scholarship

Posted on by Jessi-Ryah Cordova

The National Milk Producers Federation announced today the creation of the Dr. Peter Vitaliano Legacy Scholarship as part of the National Dairy Leadership Scholarship Program. The award will be used to help support a student who demonstrates attributes exemplified by Dr. Vitaliano to honor his longtime commitment to the success of U.S. dairy producers and cooperatives.

“NMPF and the NMPF Board of Directors are honored to establish the Dr. Peter Vitaliano Legacy Scholarship,” said NMPF President and CEO Gregg Doud. “This commitment embodies his passion for education and commitment to making a difference in the dairy industry. We are recognizing Peter’s legacy and investing in the pipeline of future leaders.”

The program also hopes to raise $500,000 this year for an endowment to support the longevity of the program, including this new legacy scholarship.

Vitaliano served as the Vice President of Economic Policy and Market Research for NMPF through 2024, leading efforts in implementing, conducting and communicating all economic analysis supporting the Federation’s programs relating to domestic and international dairy policy. He has extensive experience with, and knowledge of, U.S. dairy markets and domestic and international agricultural and trade policy.

Since 1992, he served as project director for numerous contracts between NMPF and the various national dairy promotion organizations, including the National Dairy Research and Promotion Board, Dairy Management, Inc., and the U.S. Dairy Export Council, conducting market information and economic research relating to domestic and international dairy markets.

“This scholarship is more than just financial support; it is a commitment to nurturing the dreams and aspirations of future generations of dairy leaders,” said Chris Kraft, NMPF scholarship committee chairman and a member of NMPF’s Board of Directors, representing Dairy Farmers of America. “By investing in the future of dairy, we are not only honoring the achievements of those who came before but also paving the way for those who will come next.”

The scholarship is designed to support individuals who demonstrate a passion for the industry through community engagement, academic interests and advocacy. Individuals selected for the Vitaliano Legacy Scholarship will also demonstrate experience with mentoring, coaching, or teaching.

The Vitaliano Legacy Scholarship will be available to applicants in the 2025-26 application cycle. To find out more information, or to donate, please visit the scholarship webpage.