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Dairy CEO Says Supply Chain Crisis Could Permanently Harm U.S. Agriculture

Posted on by Theresa Sweeney

The current supply chain crisis could cause “irreparable harm” to agriculture, Mike Durkin, President and CEO of Leprino Foods, said in testimony prepared for a U.S. House Agriculture Committee hearing today about how supply chain issues are affecting export markets for Leprino and the U.S. dairy industry. The U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) voiced strong support for Durkin’s call for U.S. government action to more effectively tackle the shipping crisis and its effects on dairy farmers and manufacturers.

“The supply chain challenges have significantly impacted our business, and we don’t expect them to ease anytime soon. I’m here to talk about a critical component of this disruption that has not received much attention – exports,” Durkin said. “This export crisis may well result in irreparable harm to American agriculture as customers around the world are questioning the U.S. dairy industry’s reliability as a supplier.”

Durkin called on Congress to act on ocean shipping legislation, address critical transport-industry labor shortages, increase port hours of operation, and take other steps to help American agriculture producers reach their foreign markets effectively.

Leprino Foods, the largest purchaser of milk in the United States, is a family-owned, privately held company with 4,500 employees and facilities in Colorado, California, New Mexico, Michigan, Pennsylvania and New York. It supports over 1,000 dairy farms and is the largest producer of mozzarella cheese as well as a leading supplier of dairy nutrition products. Leprino exports 26% of its milk equivalent volume to 55 countries.

Across the industry, approximately one day’s worth of U.S. milk production each week goes to exports, which results in about $6.5 billion in U.S. dairy products being exported to over 133 countries.

“The strain of shipping challenges is taking a heavy toll on dairy exporters, which is why it was so important that the House Agriculture Committee heard today from companies such as Leprino Foods that are doing everything possible to hang onto foreign customers yet are still bearing the brunt of this problem,” said Krysta Harden, president and CEO of USDEC. “Dairy exporters are working hard to get American-made product to foreign customers in a reliable and affordable way, but the present situation can’t be sustained long-term. We need Congress and the Administration to move swiftly to improve the efficiency and fairness of supply chains.”

“Dairy depends on exports, a vital part of the total demand for the milk produced every day by America’s hard-working dairy farmers” said Jim Mulhern, president and CEO of NMPF. “We risk damaging foreign market relationships and long-term customers if we cannot better assure efficient export flows. Leprino Foods provided some important recommendations to Congress to address the supply chain challenges. We hope both they and the Administration act quickly to provide relief.”

CEO’s Corner: Dairy Builds Progress on Sustainability as Legislation Inches Forward

Posted on by Theresa Sweeney

Members of Congress continue working on budget reconciliation and infrastructure legislation that, for all of its political challenges, could provide important support for U.S. dairy’s efforts to achieve net zero greenhouse gas emissions by 2050. We are hoping for a positive conclusion to this process: Strong candidates for inclusion in a final package are important policy gains for dairy that set up farms for new revenue streams and help achieve crucial industry goals. And once those measures are achieved, additional opportunities for dairy success lie ahead.

The biggest emerging opportunity in the current bills before Congress comes under the heading of “climate-smart agriculture” thanks to the leadership of Senate Agriculture Committee Chairwoman Debbie Stabenow.  The idea of farmer stewardship as a climate solution is a no-brainer within farming, but it’s picking up steam more broadly as a way to help farms prosper in a world in which climate change will be a bigger part of federal policy, regardless of which party is in charge. “Climate-smart” often can also mean “conservation smart” as well: That’s creating opportunities to re-examine federal conservation programs in ways that better fit dairy by emphasizing industry practices that can generate and yield meaningful environmental benefits. These can range from sequestering carbon in soil and reducing greenhouse gas emissions to creating new revenue streams from manure management.

Dairy has long supported robust conservation funding, but those programs haven’t always emphasized some of the stewardship practices in which dairy farmers excel most. Ample and appropriate climate-smart ag funding, as an element of the reconciliation package, will move conservation programs in the right direction, creating opportunities to recognize dairy farmers for the great work they’re doing and offering incentives for additional efforts including reducing enteric emissions through improved feed and diet management. That in turn supports the industry’s Net Zero goals and makes U.S. milk even more marketable for sustainability-conscious international customers.

Related to climate-smart progress is the Agriculture Environmental Stewardship Act, which would create a 30 percent investment tax credit to cover the upfront costs of nutrient separation technologies as well as methane digesters for a variety of different uses. The idea has found bipartisan support among tax-writing committees in both the House and Senate, and at least parts of the proposal are in vehicles that could be included in the budget reconciliation package. Doing so would create a great opportunity for producers to turn their environmental leadership into a balance-sheet gain.

These initiatives — and other benefits that range from expanded rural broadband to improved roads and bridges — make us enthusiastic about what the bills being negotiated could hold for dairy, especially with the sidelining of tax proposals that could have harmed the future of family dairy farming in this country. And beyond them, other industry goals are on track for success as well. Prominent among them is faster approval of the feed additives dairy needs to meet emissions goals and compete worldwide.

The Food and Drug Administration has long treated animal feed additives seeking market approval as drugs rather than as foods, a more cumbersome regulatory process that’s impeding a potential game-changer in reducing enteric emissions and meeting Net Zero goals. We’ve argued before FDA that the additives, which are absorbed via the digestive tract, should be treated as food. This year, we’re making progress in prevailing. Both the House and the Senate appropriations bills for the 2022 fiscal year include language looking at how we can get FDA to classify these additives appropriately – and importantly, include the funding needed to see that job through.

These gains, along with progress toward voluntary carbon markets and other initiatives, represent years of work from NMPF and its allies. It’s gratifying to see them nearing reality. It’s also important to note that even if some, or even all, of these goals aren’t reached in the next few weeks – if their legislative vehicles get snagged by the back-and-forth of Washington or some components aren’t included in a final agreement – the support they’ve attracted this year positions dairy well for the next farm bill, the writing of which will begin in earnest very soon. Patience will be rewarded.

These initiatives may not get the same attention as headline items like free community college or childcare, but for dairy, they represent real improvements in farmer fortunes. They don’t happen overnight – but they remind us why dairy’s future is exciting, and why even though the narrative may often be that “nothing’s getting done,” the fact is, sometimes progress happens. And we’re pleased to be helping it along.

Dairy Builds Progress on Sustainability as Legislation Inches Forward

Posted on by Theresa Sweeney

Members of Congress continue working on budget reconciliation and infrastructure legislation that, for all of its political challenges, could provide important support for U.S. dairy’s efforts to achieve net zero greenhouse gas emissions by 2050. We are hoping for a positive conclusion to this process: Strong candidates for inclusion in a final package are important policy gains for dairy that set up farms for new revenue streams and help achieve crucial industry goals. And once those measures are achieved, additional opportunities for dairy success lie ahead.

The biggest emerging opportunity in the current bills before Congress comes under the heading of “climate-smart agriculture” thanks to the leadership of Senate Agriculture Committee Chairwoman Debbie Stabenow.  The idea of farmer stewardship as a climate solution is a no-brainer within farming, but it’s picking up steam more broadly as a way to help farms prosper in a world in which climate change will be a bigger part of federal policy, regardless of which party is in charge. “Climate-smart” often can also mean “conservation smart” as well: That’s creating opportunities to re-examine federal conservation programs in ways that better fit dairy by emphasizing industry practices that can generate and yield meaningful environmental benefits. These can range from sequestering carbon in soil and reducing greenhouse gas emissions to creating new revenue streams from manure management.

Dairy has long supported robust conservation funding, but those programs haven’t always emphasized some of the stewardship practices in which dairy farmers excel most. Ample and appropriate climate-smart ag funding, as an element of the reconciliation package, will move conservation programs in the right direction, creating opportunities to recognize dairy farmers for the great work they’re doing and offering incentives for additional efforts including reducing enteric emissions through improved feed and diet management. That in turn supports the industry’s Net Zero goals and makes U.S. milk even more marketable for sustainability-conscious international customers.

Related to climate-smart progress is the Agriculture Environmental Stewardship Act, which would create a 30 percent investment tax credit to cover the upfront costs of nutrient separation technologies as well as methane digesters for a variety of different uses. The idea has found bipartisan support among tax-writing committees in both the House and Senate, and at least parts of the proposal are in vehicles that could be included in the budget reconciliation package. Doing so would create a great opportunity for producers to turn their environmental leadership into a balance-sheet gain.

These initiatives — and other benefits that range from expanded rural broadband to improved roads and bridges — make us enthusiastic about what the bills being negotiated could hold for dairy, especially with the sidelining of tax proposals that could have harmed the future of family dairy farming in this country. And beyond them, other industry goals are on track for success as well. Prominent among them is faster approval of the feed additives dairy needs to meet emissions goals and compete worldwide.

The Food and Drug Administration has long treated animal feed additives seeking market approval as drugs rather than as foods, a more cumbersome regulatory process that’s impeding a potential game-changer in reducing enteric emissions and meeting Net Zero goals. We’ve argued before FDA that the additives, which are absorbed via the digestive tract, should be treated as food. This year, we’re making progress in prevailing. Both the House and the Senate appropriations bills for the 2022 fiscal year include language looking at how we can get FDA to classify these additives appropriately – and importantly, include the funding needed to see that job through.

These gains, along with progress toward voluntary carbon markets and other initiatives, represent years of work from NMPF and its allies. It’s gratifying to see them nearing reality. It’s also important to note that even if some, or even all, of these goals aren’t reached in the next few weeks – if their legislative vehicles get snagged by the back-and-forth of Washington or some components aren’t included in a final agreement – the support they’ve attracted this year positions dairy well for the next farm bill, the writing of which will begin in earnest very soon. Patience will be rewarded.

These initiatives may not get the same attention as headline items like free community college or childcare, but for dairy, they represent real improvements in farmer fortunes. They don’t happen overnight – but they remind us why dairy’s future is exciting, and why even though the narrative may often be that “nothing’s getting done,” the fact is, sometimes progress happens. And we’re pleased to be helping it along.

NMPF Heralds Landmark New Climate-Smart Ag Investments in Build Back Better Act

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) today lauded the inclusion of $27 billion in a once-in-a-generation funding boost for conservation programs – with an emphasis on climate smart agricultural practices — in the pending Build Back Better Act.

The package, spearheaded by Senate Agriculture Committee Chairwoman Debbie Stabenow (D-MI), will help dairy farmers advance their sustainability leadership by bolstering farm bill conservation programs in meaningful ways for dairy. Substantial new investments will provide important voluntary technical assistance to dairy farmers who undertake a variety of stewardship practices. The legislation also includes targeted new funding that emphasizes critical farm practices that yield significant environmental benefits for dairy, notably in feed management.

“Dairy farmers have long been proactive land and water stewards because they seize opportunities for innovation,” said Jim Mulhern, president and CEO of NMPF. “We are deeply grateful to Chairwoman Stabenow for her tireless leadership to secure game-changing conservation investments, with a focus on climate-smart practices. These investments will better position dairy farmers to proactively implement the dairy sector’s Net Zero Initiative and fulfill its 2050 environmental stewardship goals.”

Dairy farmers in 2020 committed in their Net Zero Initiative to become greenhouse gas neutral or better by 2050 and maximize water quality around the country.

Key wins for dairy among the climate-smart ag provisions of the Build Back Better Act include:

  • $9 billion in new funds for the Environmental Quality Incentives Program, which provides important technical assistance to dairy farmers, targeted toward stewardship practices that can reduce greenhouse gas emissions;
  • $25 million annually for Conservation Innovation Trials, with the new funding targeted toward initiatives that use feed and diet management to reduce enteric methane emissions, which can comprise roughly one-third of a dairy farm’s greenhouse gas footprint. NMPF is excited for this opportunity to amplify its focus on innovative feed additives and rations that reduce enteric emissions;
  • A new cover crop initiative to pay producers $25 per acre of established cover crop practices to reduce nutrient runoff and soil erosion; and
  • $7.5 billion in new funds for the Regional Conservation Partnership Program, which funds locally developed, targeted partnership projects, with emphasis on initiatives that incentivize or target reduced methane emissions.

Along with applauding the inclusion of climate-smart funding, NMPF expressed appreciation for Congress’s likely exclusion of tax-policy changes that could have discouraged inter-generational farm transfers.

NMPF and the National Council of Farmer Cooperatives (NCFC) in August led a coalition of 12 agricultural and conservation organizations on a letter advocating for significant new funding for climate-smart agricultural practices. That letter also voiced major concerns with proposed changes to tax policy that would undermine the transfer of family farms from one generation to the next. NMPF is pleased that these tax proposals are now unlikely to move forward in Congress.

“We are grateful that Congress is likely to heed our call and put aside problematic tax proposals that if enacted would have harmed the future of family farming,” Mulhern said. “We thank the many members of Congress who have worked to ensure these concepts did not move forward.”

USDEC, NMPF Commend Senate Confirmation of Cindy McCain for U.S. Representative to the United Nations Agencies for Food and Agriculture

Posted on by Theresa Sweeney

The U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) support the Senate confirmation yesterday of Cindy McCain’s nomination to serve as U.S. Representative to the United Nations Agencies for Food and Agriculture. The United States’ active involvement in the three Rome-based U.N. food agencies, including the Food and Agriculture Organization (FAO), is critical as countries and their food producers combat hunger.

“Through Codex Alimentarius and other programs, the FAO plays a key role in setting global standards for the movement and consumption of safe food. U.S. dairy producers, manufacturers, and exporters rely on strong U.S. leadership in FAO convenings to ensure policy recommendations and decisions are science-based,” said Krysta Harden, President and CEO of USDEC. “With a wealth of experience working across international boundaries, Cindy McCain is well-positioned to serve as the next U.S. Representative to the UN Agencies for Food and Agriculture.”

As the global conversation on sustainable food systems shifts from the UN Food Systems Summit to work in the Rome-based agencies, it is critical that the U.S. has a strong voice in international fora to amplify the role that the U.S. dairy and agricultural industry is playing in advancing sustainability efforts. American dairy farmers, processors, and manufacturers are leaders in advancing voluntary action to reduce environmental impacts, including an industry-wide goal to achieve net-zero carbon emissions by 2050 and a first-of-its kind voluntary National Dairy Farmers Assuring Responsible Management (FARM) Animal Care program, which sets high standards for animal care, housing, and antibiotic stewardship for 99% of all milk originating in the United States.

“The position of U.S. Ambassador to the UN Food Agencies is uniquely important as countries grapple with feeding a growing world population in a sustainable manner. UN forums, including the important follow up work initiated by the Food Systems Summit, are opportunities for U.S. dairy to showcase our sustainability efforts, and it is vitally important for the U.S. dairy industry to be well represented in these discussions,” said Jim Mulhern, President and CEO of NMPF. “With a long and rich career devoted to serving people around the world, Cindy McCain epitomizes the qualities needed to serve the American people in Rome.”

‘Climate-Smart Ag’ Enhances Dairy Stewardship, NMPF’s Bleiberg Says

Posted on by Theresa Sweeney

The reconciliation bill being negotiated before Congress would help “climate-smart” agriculture move forward by adapting USDA conservation programs toward approaches that aid dairy in its Net Zero Initiative goal of being carbon neutral or better by 2050, says Paul Bleiberg, NMPF’s Senior Vice President for Government Relations, in a Dairy Defined podcast released today.

“The excitement here for us in the agriculture space, in particular for dairy, is the possibility of new funding, increased funding for conservation programs over time, really with an emphasis on those practices, those climate-smart ag practices that can generate and yield meaningful environmental benefits, whether that be sequestering carbon in soil, reducing greenhouse gas emissions, better emphasis on the newer management, feed management, things like that,” Bleiberg said. “We see a tremendous amount of potential.”

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.

Farmer Focus: Young Farmers Create Opportunity with Aged Cheese

Posted on by Alan Bjerga

When Kevin Lussier and his wife Shelby came back to the family dairy in Hawthorne, FL in 2016 after graduating from college, they saw an opportunity for innovation and sustainability with artisanal cheese. They now operate Hawthorne Creek Creamery and sell a selection of four cheeses made with milk from their specialty herd of Jerseys. Sustainability, both in their supply chain and on the dairy itself, is a priority for the operation, Kevin says.

“I think sustainability is an amazing thing and something that every dairy farmer would tell you is what they want to focus on, but if we’re not economically sustainable, we can’t become environmentally sustainable,” Kevin says.

In the latest Farmer Focus, Lussier shares the challenges that came with starting a business right before the pandemic and the successes they have found in selling to their community and to consumers across the state.

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.

Michigan Dairy Farm Leader Highlights Need for Market Access Opportunities for U.S. Dairy in a Farmers for Free Trade Virtual Townhall

Posted on by Theresa Sweeney

A Michigan dairy farmer stressed the job-creating and farm-supporting benefits of generating greater dairy market access opportunities during a virtual townhall organized by Farmers for Free Trade (FFT).

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) are members of FFT and play an active role in helping the organization carry out its mission of informing the public about the benefits of free trade and supporting the pursuit of beneficial trade agreements that expand export opportunities for American farms.

During today’s event, Doug Chapin, dairy producer and Chairman of the Michigan Milk Producers Association, highlighted the importance of exports for his family’s farm and the thousands of workers throughout the dairy supply chain. To support those American jobs, he urged a more aggressive pursuit of trade policies that can expand market access for U.S. dairy exports by removing tariff and non-tariff barriers that make it harder to compete around the world.

In his remarks, Chapin said that American exporters are facing an increasingly uneven playing field as the European Union and New Zealand continue to ink new trade deals with key markets while the United States falls behind.

“Aside from the USMCA update to NAFTA, the last new U.S. free trade agreements went into effect nearly a decade ago with negotiations having taken place even earlier than that,” Chapin said. “We seem to either be evaluating or at times negotiating deals, but not implementing new comprehensive trade agreements that eliminate tariffs on our exports.”

Chapin comes from a farming family that has operated a dairy in Remus, Michigan, for over a century. He manages Chapin Family Farms LLC along with his wife, Cheri, and son, Sam. In his comments, Chapin noted that his farm directly employs 14 workers, supporting the local economy as dairy farms do across the United States.

“We appreciate the opportunity this Farmers for Free Trade townhall has provided to highlight the need for expanded market access for American-made dairy products, and we thank Doug for being willing to share how Washington does impact dairy farmers throughout the country,” said NMPF president and CEO Jim Mulhern. “We believe greater access to other key dairy markets where the U.S. is facing the challenge of competing at a disadvantage, particularly in Asia, will mean continued opportunity and growth for America’s dairy farmers like Chapin Family Farms.”

“The U.S. Dairy Export Council supports Doug’s comments today on the need for the administration to pursue new trade agreements that benefit the dairy producers and processors in Michigan and elsewhere in America,” said USDEC president and CEO Krysta Harden. “U.S. dairy exporters are able to compete on quality and price anywhere in the world – so long as there is a level playing field. Unfortunately, that playing field continues to tilt in our competitors’ favor as the tariff gap between the United States and our trade competitors only widens. We thank Doug for highlighting this trade situation and the ripple effects it has throughout the supply chain. We urge the administration to take more aggressive steps to grow agricultural market access opportunities.”

Chapin is a participant in NMPF and USDEC’s inaugural class of Dairy Trade Envoys, a select group of dairy producers and processing staff focused on educating elected officials and media about dairy trade policy priorities.