NMPF-Led Environmental Stewardship Proposal Moves Forward in Congress

The Agriculture Environmental Stewardship Act, which advances key environmental policy priorities for dairy farmers, has made strides in both houses of Congress in the past few weeks, with introduction in the House of Representatives and advancement in a Senate committee.

Reps. Ron Kind (D-WI) and Tom Reed (R-NY), both of whom serve on the tax-writing Ways and Means Committee, introduced on June 16 the House version of the bill, which would create a 30 percent Investment Tax Credit for nutrient recovery technologies and biogas systems. Much of the measure initially advanced in the House last summer as part of a larger package called the Moving Forward Act. This legislation will help fulfill the goals of the dairy sector’s Net Zero Initiative by spurring greater on-farm energy production and enhancing environmental mitigation.

The House introduction followed Senate action that moves the bill even further in that chamber. Senator Sherrod Brown (D-OH) successfully secured the inclusion of the legislation as part of Senate Finance Committee Chairman Ron Wyden’s Clean Energy for America Act. The Senate Finance Committee successfully advanced the bill on May 26, positioning it for inclusion in a broader legislative package.

NMPF has long sought passage of this measure in partnership with the American Biogas Council to reduce dairy’s environmental footprint and help address nationwide water-quality challenges.

“The bipartisan Agriculture Environmental Stewardship Act recognizes the value that biogas systems can have for dairy producers of all sizes as they continuously improve their sustainability nationwide,” said Jim Mulhern, President and CEO of NMPF in a statement. “This new investment tax credit also incorporates nutrient recovery technologies, which can transform manure into fertilizer for crops and bedding for cows. These technologies are important, but expensive. This bill will help farmers incorporate these new technologies into their operations, for the benefit of everyone.”

Dairy’s Challenges are Wide-Ranging. So Are We.

While Washington’s wheels turn – slowly – the day-to-day realities of farming are making 2021 another challenging year for dairy nationwide.

The western U.S. is in its worst drought in two decades. The milk-price outlook is cloudy, but higher feed costs are a reality, squeezing margins and balance sheets. The economic recovery tied to the U.S. emergence from the coronavirus pandemic carries with it uncertainties not typical to an upturn, with questions about how consumers will react to the reopening. And all expectations are tempered by the possibility of a virus resurgence, be it through a variant or insufficient vaccination worldwide.

The National Milk Producers Federation has existed since 1916 to improve dairy farmers’ lives by working for better federal policy, and that remains central to our mission today. But as the only national organization that takes the most comprehensive approach to serving dairy farmers’ policy needs, our efforts reach far beyond the Beltway, helping farmers adapt and address the challenges they face.

That’s why we provide leading economic analysis through our Dairy Market Report, helping to explain market trends and encourage effective risk management. It’s why we administer the FARM Program, enabling continuous improvement in areas from animal welfare to biosecurity. It’s also why we’re always looking for new ways to serve our members and meet them where they are – on farms and in the marketplace – so we can better connect policy priorities in meaningful ways with the farmers whose hard work inspires our own.

Since the pandemic began in 2020, we’ve been working to assist producers and help them weather the market disruptions. Our efforts have brought more than $6 billion in federal support to dairy farmers across the country. We’ve also been adapting and expanding our web resources to meet evolving farmer needs. Our coronavirus webpage continues to be a go-to resource for business management during the pandemic, with updates recently focused on dairy’s leadership in nationwide vaccination efforts. Last summer we also created a page dedicated to natural disasters including drought and wildfires, which are an unfortunate likelihood as this summer progresses. Working in tandem with FARM and our members, we strive to be useful in helping farmers meet whatever they face, providing information and guidance that serve them.

Resources that assist farmers meet immediate challenges, be it on webpages or our frequent online “toolboxes” on emerging issues that we sent to members, also help us in our policy work by keeping our own priorities tied to the most pressing needs. That’s been true throughout coronavirus, when massive supply chain disruptions required both understanding and action, and it’s true for other fast-changing situations such as natural disasters. As the summer progresses and needs develop, farmers and industry professionals shouldn’t hesitate to contact us at info@nmpf.org with whatever observations or questions that might be helpful in getting through another challenging time.

Both long-and short-term efforts matter. In Washington, we’ve seen recent progress in some years-long policy fights. The passage of the Farm Workforce Modernization Act in March brings the only House-approved piece of agriculture labor legislation since 1986 closer to reality. Senate approval of the Growing Climate Solutions Act last month promises to add key pieces to the puzzle of how to move our industry toward its commitment to be net-zero in carbon emissions by 2050.

But for more immediate needs, we need regular communication with cooperatives and their farmer-members, and that comes from continued relevance to what those members are going through each day.

It’s going to be another long, hot summer – but when it comes to seeking solutions, we pledge to never come up dry. That’s important as we serve our mission to craft better policy but not be bounded by the Washington Beltway. Today’s challenges are defined by the local weather forecast as much as they are by national headlines. We’re right there with you.

Dairy Industry Urges Renewal of Trade Promotion Authority

To foster further expansion of U.S. dairy exports, the National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) called upon the Biden Administration to seek renewal of Presidential Trade Promotion Authority (TPA) following its expiration today.

TPA lays out congressional expectations for trade agreements negotiated by the Administration and establishes a clear pathway for straightforward congressional input. To remain globally competitive, future trade agreements are vital for U.S. dairy farmers, workers, and manufacturers.

The call for renewal comes on the one-year anniversary of the U.S.-Mexico-Canada Agreement (USMCA), enacted with the help of TPA. For dairy, USMCA provisions established improvements to market access in Canada and set clear standards for trade with Mexico.

USMCA also established procedures to enforce the agreement. In May, U.S. Trade Representative Katherine Tai initiated a dispute settlement proceeding over Canada’s administration of dairy tariff rate quotas (TRQs) in order to preserve the market access expansion negotiated in the agreement. The U.S. dairy industry continues to monitor implementation of other key USMCA areas as well such as Canada’s Class 7 disciplines on dairy exports and Mexico’s trade-distorting regulatory proposals.

“As we celebrate the one-year anniversary of USMCA today, it’s heartening that the Biden Administration has already sent a signal to our trading partners that its terms must be upheld by launching a dispute settlement case to defend U.S. dairy market access rights in Canada,” said Jim Mulhern, President and CEO of NMPF.

“If properly implemented, USMCA is a positive step in the right direction. But it is not enough alone for U.S. dairy farmers and cooperatives to keep pace in global markets. By standing still, we slip further backward as competitors in Europe and New Zealand advance their own trade agreements with key markets. A forward-leaning trade agenda focused on expanding export opportunities for Made-in-America products is critical to dairy farmers. TPA is a vital tool in that process.”

USDEC President and CEO Krysta Harden also stressed the importance of TPA for exports.

“Foreign markets are crucial to the health and prosperity of America’s dairy farmers and processors,” said Harden. “One in six gallons of U.S. milk is destined for export, meaning that our ability to retain foreign customers in an increasingly competitive global dairy market is absolutely essential to farmers and dairy manufacturing facilities employing workers here at home.

“To accomplish that, we need to catch up with trading partners who have been speeding ahead with trade deals that give them a leg up over us in foreign markets. USMCA is an example of how TPA can help the U.S. expand trade opportunities, but that is only one advancement among many that are needed,” Harden continued. “Renewing our commitment to the global community and restoring American leadership starts with renewing TPA, so that U.S. dairy can realize new opportunities in places such as southeast Asia, Africa, South America and the UK.”

In comments to the U.S. International Trade Commission last year, NMPF and USDEC note that free trade agreements yield significant benefits for dairy farmers and manufacturers alike. Free Trade Agreements have increased U.S. dairy exports by $2.14 billion and the equivalent of 1.4 billion gallons of milk translating to $17 billion in additional dairy farmer revenue.

Standing Out: Dotterer Dairy Shows Rise of Women in Dairy

Arlington, VA – On Dotterer Dairy in Mill Hill, PA, sisters Candice White and Amanda Condo work alongside their cousin Lori Dotterer Butler as the third generation on the farm. Their fathers and grandfathers still have large roles in day-to-day operations – but the three women manage crops, take care of the cows, and oversee the 1,250-Holstein dairy business.

“I feel like there’s now more women coming out and saying they are a farmer,” Candice, dairy manager at Dotterer Dairy says. “Women are being empowered about standing beside her husband, not behind him.”

In the latest Farmer Focus, the Dotterers share how they work closely with their women-led cooperative to foster sustainability and longevity on the dairy.

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.

Farmer Experience a Plus in Congress, Valadao Says

A farm background, and the emphasis it places on people working together, brings the type of experience that’s helpful to getting things done in Congress, said Rep. David Valadao, R-CA, in the latest Dairy Defined podcast, released today.

“Every time a salesman shows up on your property, they might be trying to sell you a product you might not like that day, but the following day, they’re going to have stuff you might like. And so to just cut off communication with someone because you disagree with them one day, doesn’t mean you cut off communication forever,” said Valadao, the only dairy farmer serving in Congress. “I do believe in Congress. For you to legislate good policy, you have to have everyone at the table and be able to have a conversation about the topic. It forces you, one, to understand the issue, but two, to hear it from both sides and try to represent our areas as best we possibly can.”

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.

 

NMPF Statement on Senate Passage of Growing Climate Solutions Act

From NMPF President and CEO Jim Mulhern:

“NMPF commends the United States Senate for passing the bipartisan Growing Climate Solutions Act by an overwhelming margin.

“This important legislation will enable USDA to informally endorse technical service providers that help farmers implement stewardship practices that can generate carbon and other environmental credits. The Growing Climate Solutions Act will encourage more farmers to participate in environmental markets, a crucial part of dairy’s Net Zero Initiative that helps dairy farmers of all sizes across the country meet our industry’s 2050 environmental stewardship goals.

“NMPF is grateful to Senate Agriculture Committee Chairwoman Debbie Stabenow (D-MI) and Senator Mike Braun (R-IN) for their bipartisan leadership in getting this measure through the Senate.”

 

The Numbers Show It — U.S. Dairy is Growing Globally

U.S. dairy products are increasingly competitive globally – a fact shown in surging export numbers, according to two top dairy economists in the National Milk Producers Federation’s latest Dairy Defined podcast.

“Global demand is fundamentally really strong right now,” said Wiliam Loux, the Director of Global Trade Analysis for the U.S. Dairy Export Council.  “Consumers within China are just wanting a lot of dairy. And Mexico, after a tough year with the COVID-19 pandemic and some economic issues, is recovering. Southeast Asia, the Middle East, all need product too.”

Loux was joined by Stephen Cain, an economic analyst for NMPF and USDEC, who noted that, relative to its main global competitors, the United States may be best positioned to take advantage of further growth in international dairy markets.

“The EU and New Zealand are facing substantial obstacles in growing their herd. We’re the only one that has the capacity to add cows, add growth to meet that growing demand,” Cain said. “Our ability to meet that demand, and adding cows and adding production, is really going to help serve us in terms of the global impact of U.S. dairy on the marketplace.”

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

 

USDEC & NMPF Appreciate Congressional Oversight; Urge Continued Federal Action on Ports Issues

“The U.S. Dairy Export Council (USDEC) thanks Coast Guard & Maritime Transportation Subcommittee Chairman Salud Carbajal and Subcommittee Ranking Member Bob Gibbs for holding a House Transportation & Infrastructure (T&I) hearing today to examine the impacts of shipping container shortages and delays on supply chains critical to global food supply,” said Krysta Harden, USDEC President and CEO. “While receiving testimony and answers from Federal Maritime Commission (FMC) Chair Maffei and Commissioner Dye is a step forward in resolving the issues the U.S. dairy industry faces, we urge House T&I leadership to ensure this oversight action results in tangible action to alleviate and resolve the challenges exporters face.”

“Dairy producers throughout the country are feeling the consequences of port congestion as delays in loading U.S. dairy exports onto carriers creates a chilling effect on farm-gate milk prices,” said Jim Mulhern, National Milk Producers Federation (NMPF) President and CEO. “We thank Chairman Carbajal and Ranking Member Gibbs for holding a hearing today to identify what enforcement authority the FMC requires to resolve this crisis and ensure American dairy exports can continue unimpeded.”

Specifically, USDEC and NMPF believe the FMC should require ocean carriers to certify that they are complying with the agency’s guidelines. Additionally, the organization urge Congress to allocate sufficient resources to the FMC to ensure complaints of carrier malpractice are prioritized and investigations are expedited to prevent shipping carriers from engaging in unfair trade practices.

U.S. Dairy Urges Further Work to Address EU Ag Barriers as Trade Relations Improve

As the United States and the European Union (EU) announced a five-year detente in aircraft case tariffs today, the U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) welcomed the break-through while also urging that further steps be taken by the EU to ensure that food and agricultural trade is not upended in the months to come.

“The bilateral commitment announced at the U.S.-EU Leaders Summit to resolve the aircraft disputes can help to normalize trade in sectors that have been harmed by retaliatory tariffs, but more work remains to get U.S.-EU trade relations on the right path,” said Krysta Harden, USDEC President and CEO. “The U.S. needs a holistic approach to Europe’s continued attempts to disrupt international trade so that our exporters have a dependable and more reasonable playing field on which to compete.”

“U.S. exporters continually have to chase new mandates by the European Union to retain our current access, even when there are no safety concerns with American dairy products,” said Jim Mulhern, NMPF President and CEO. “Too often dairy trade with the EU is a one-way street. The EU’s frequent approach to import requirements is to mandate prescriptive procedures that U.S. dairy exporters need to make time-consuming changes in order to conform just to retain access to that market for our safe products. The products we export today are entirely safe; new EU mandates that would seek to force the U.S. to change our regulatory system match theirs would do nothing to enhance that.”

NMPF and USDEC noted that the U.S. has the safest food supply in the world and was the first dairy industry globally to achieve international certification for its animal care program. EU efforts to impose their own process-focused regulations on their trading partners run counter to the EU’s international commitments and appear designed simply to layer added cost and complications upon imported products to discourage trade. From geographical indications to overly prescriptive health certificates, the EU’s approach to managing trade has been to hamper competition rather than to let it flourish. To continue to move transatlantic trade relations forward, the EU’s underlying approach to agricultural trade must change.

Members of Congress are also calling for the EU to take steps to help advance transatlantic trade relations by addressing looming new EU import requirements that threaten to upend trade in the coming months. Yesterday, Representatives Ron Kind (D-WI), Jackie Walorski (R-IN), Jim Costa (D-CA), and John Katko (R-NY) wrote to the EU’s Ambassador to the U.S. Stavros Lambrinidis, calling on the EU to delay implementation of new and excessive dairy certification requirements until U.S. and EU negotiators can reach a mutually agreed solution.

Members of Congress Seek Delay in European Union Action to Prevent Disruption of U.S. Dairy Exports

The U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) today thanked congressional leaders seeking to prevent trade disruptions of U.S. dairy exports to the European Union (EU). Representatives Ron Kind (D-WI), Jackie Walorski (R-IN), Jim Costa (D-CA) and John Katko (R-NY) wrote to EU Ambassador to the United States Stavros Lambrinidis, urging a delayed implementation of new EU certification requirements for imports of U.S. dairy and composite food products and greater recognition of the strength of the U.S. system in producing safe exports.

“On behalf of America’s dairy farmers, processors, and exporters, we thank Representatives Kind, Walorski, Costa and Katko for emphasizing to European leadership the need to prevent significant trade disruptions to U.S. dairy exports,” said Krysta Harden, USDEC President and CEO. “The U.S. government and American dairy industry have been making a reasonable request to delay implementation of the EU’s new certification requirements, which fail to recognize the safety of U.S. dairy products and the high level of animal health protections in our industry. If the EU wants to steer its trade relationship with the U.S. toward stronger ground, it should start by changing its plan to choke off access for dairy and other products later this summer.”

“We appreciate the bipartisanship support by key members of Congress writing to the EU Ambassador, calling for immediate action to delay implementation of new, unwarranted certification requirements for U.S. dairy and composite food products until U.S. and EU government officials negotiate a mutually agreeable solution,” said Jim Mulhern, NMPF President and CEO. “U.S. dairy farmers and processors continually have to chase new mandates by the European Union to retain our current access, even when there are no safety concerns with American dairy products. This type of unwarranted red tape is exactly the type of nontariff trade barrier that drives a gaping dairy trade deficit between the U.S. and the EU.”

The European Commission published new certification requirements at the end of 2020 for a wide range of food products, including dairy, adding confusing and vague requirements that threaten to upend U.S. dairy exports to the EU.  Two sets of new requirements have posed concerns to the U.S. dairy industry: (1) revised import certificates for dairy products; and (2) new certification requirements for “composite products,” which are processed food products that contain ingredients of both animal and plant origin.

We Don’t Care What They Say. We Won’t Stay in a World Without Cows

Animal agriculture gets unfairly blamed for a lot of things, and from a lot of directions, from Big Oil interests that want to misdirect the climate debate, to vegan activists who use every argument they can concoct to convince others of their dogma. That’s bad for nutrition, bad for the planet, and bad for alleviating poverty and hunger.

But if the dairy-haters are so insistent, why not give ‘em what they want? Or, at the very least, why not take a deeper look at what the world would actually look like if their demands were met.

“A World Without Cows: Imagine Waking Up One Day to a New Reality” is a piece written by Dr. Mitch Kanter and Donald Moore from Global Dairy Platform, an international industry organization that aims to demonstrate dairy’s contributions to global food systems, healthy diets and sustainable livelihoods and lead collaborations that enhance them. The paper is a thought exercise on what would happen were there no longer cows grazing pasture in New Zealand and New Mexico, roaming freely in India, or supporting communities from Kenya to California. If all the dairy cows disappeared tomorrow, what kind of world would we live in?

The answer: One that would see significant losses for people and the planet.

Nutrition would be poorer, and the poorest would be worst off. Worldwide, dairy provides five percent of dietary energy, as well as 13 essential nutrients in an efficient and cost-effective package. Looking beyond the First World problem of lost ice cream (tragic though that may be), dairy is a literal lifesaver in parts of the world where high-quality nutrition is scarce and often unaffordable. Developing countries with safe, affordable dairy have less stunting and malnutrition among their populations than developing nations that rely more on plant- and grain-based diets.

Nutrition quality matters. Dairy has it in abundance. That’s crucial for people for whom an abundance of anything is rare.

Earth’s ecology would suffer. Cows are well-suited to the land they graze. About 70 percent of it is permanent pastureland – land that, even under the best of circumstances, isn’t suitable for growing crops. Cows take land ill-suited to provide plant-based nutrition and turns it into a source of high-quality animal nutrition. Without the cows, the additional cropland needed to (imperfectly) replace dairy would need to come from somewhere else.

Anyone have some extra rainforest lying around that could be cut down to grow those crops?

Greenhouse gas benefits would be limited. There’s no denying that greenhouse gas emissions from cows contribute to climate change. But denying the need for their existence because of climate change is a distortion. Dairy is responsible for up to 3 percent of greenhouse emissions. That’s a real contribution, one the U.S. dairy sector and other large dairy companies globally are actively tackling through its Net Zero Initiative to become GHG-neutral by 2050. But it pales next to the global contributions of the energy (25 percent) industrial (21 percent) and transportation (14 percent) sectors. The type of emissions is important to note as well. Cows produce primarily methane, which has relatively short-lived climate impacts compared to the carbon emitted by fossil fuels, which can linger in the atmosphere for decades or longer.

Eliminating cows would lower emissions. But the dairy sector is already working to lower its own emissions – and even drastic measures would solve only a small piece of the climate puzzle relative to other sectors.

Developing-world farmers would face poverty. Roughly 600 million people live on approximately 133 million dairy farms worldwide. Eliminating cows eliminates their jobs. Pastoralists aren’t simply going to migrate to cities – and if they do, they will only add to stresses in those places. The 37 million women who lead dairy farms worldwide would have even fewer options – cows in many regions are insurance policies against hardship, and without them, for million of people, those hardship will surely come.

“It is worth reminding ourselves that it is folly to think that selecting chickpeas flown to the grocer from halfway around the world versus a locally sourced cheese is a more sustainable choice,” the authors write. Indeed. The world is a complicated place, and solutions to its problems are also complex. Simplistic choices in diet, in food systems, or in attitudes toward entire agricultural sectors, won’t yield positive outcomes.

Dairy doesn’t claim to have all the solutions. But it’s part of many solutions – in nutrition, in economics, and yes, even on climate. Imagining a world without cows, just for a moment, makes it clearer to see what needs to be thought about next – the best ways to sustainably incorporate dairy’s very real benefits into a better future for everyone.