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NMPF Sets Stage for a Successful 2021 in Trade

Posted on by Theresa Sweeney

NMPF is poised for further gains in 2021 after working hard to advance dairy’s trade priorities in 2020, delivering critical wins for America’s dairy farmers and farmer-owned cooperatives.

NMPF’s Jaime Castaneda, Senior Vice President of Policy Strategy and International Trade, wrote an op-ed for Hoard’s Dairyman detailing a few of the many ways NMPF worked closely with the U.S. Dairy Export Council to help to dismantle tariff and nontariff barriers and expand market access for dairy exports in 2020.

Examples included:

  • Pushed for successful implementation of the US-China Phase 1 deal’s dairy nontariff relief provisions, including removal of the dairy facility inspection requirement and more timely updates of China’s list of authorized U.S. exporters;
  • Marshaled robust support from 170 members of Congress demanding that the U.S. take a stronger approach to preserve U.S. rights to use common food names and safeguard U.S. market access abroad;
  • Secured tariff cuts from Vietnam and China to the benefit of U.S. dairy exporters; and
  • Fended off multiple regulatory and policy pressures in Mexico that threated access to our largest export market, and much more.

Each of these accomplishments has helped set the stage to bring home even greater benefits in the coming year. To achieve this, NMPF is working with the U.S. Dairy Export Council (USDEC) to ensure that the industry is well-positioned to swiftly execute on key issues as a new Congress and a new administration takes office in 2021.

Key goals include:

  • Robust enforcement regarding the implementation of USMCA dairy commitments by Canada and Mexico;
  • Pursuit of new trade agreements with sizable net dairy-importing nations; and
  • Strong action to address the use of nontariff trade barriers to hamper U.S. dairy exports’ opportunities.

As part of this important effort to secure new advances in trade policy, NMPF joined with Farmers for Free Trade to issue a report based on the AgTalks series NMPF helped sponsor and participated in earlier this year. The Farmers for Free Trade report includes an assessment on the state of American agriculture as well as policy analysis and recommendations.

Finally NMPF soon will launch a joint initiative with USDEC to equip dairy farmers and industry staff with the tools necessary to articulate dairy trade issues to policymakers and the media as the need arises.

November DMC Margin Above Assistance Threshold; 2021 Payments Expected

Posted on by Theresa Sweeney

The monthly margin for November under the Dairy Margin Coverage (DMC) program was $11.87 per cwt, the second-highest monthly margin of 2020. Margins are still expected to fall in 2021, with levels that trigger federal assistance payments for much of the year.

The November U.S. average all-milk price was $21.30 per cwt, the highest of all 2020 monthly milk prices, but that month’s DMC feed-cost calculation was $9.43 per cwt of milk, also the year’s highest. The highest margin in 2020 – and the highest since November 2014 – was $12.41 per cwt in July, when the all-milk price was $20.20 per cwt, but the feed cost was just $8.09 per cwt.

High margins and prices are expected to be distant memories for the foreseeable future, according to current dairy futures. Milk prices are not anticipated to rise much above $18.00 per cwt, with DMC margins projected to remain well below $9.50 per cwt, at least through next summer. Growth in dairy cow numbers and milk production are accelerating. Meanwhile, the COVID-19 pandemic is expected to keep food service use of dairy depressed for some time, and the outlook for continued USDA food purchases does not currently appear able to be fully adequate to bridge this growing gap between milk and supply and demand.

The cost side is also expected to be challenging: Increased prices of corn and soybean meal are projected to boost the DMC feed cost calculation well above $10.00 per cwt during this same forecast horizon.

The DMC information page on NMPF’s website offers educational resources to help farmers better use the program.

Dietary Guidelines Reaffirm Dairy’s Nutritional Benefits; Fats Review Urged

Posted on by Theresa Sweeney

NMPF praised USDA and HHS for its work on the 2020-2025 Dietary Guidelines for Americans (DGA) released last week, which reaffirmed dairy’s central role in diet as a provider of essential nutrients that are often under-consumed in American diets.

NMPF also pledged to continue efforts to broaden consideration of the latest science on dairy fats in the next examination of the federal guidelines, which are released twice each decade.

“USDA and HHS deserve praise for once again recognizing just how vital dairy is to the nation’s health and well-being,” said Jim Mulhern, president and CEO of NMPF. “We encourage them to affirm that role even more clearly in the next iteration of the Dietary Guidelines, to reflect the positive contribution of dairy fats in diets that’s increasingly recognized in a growing body of evidence.”

The guidelines culminate nearly two years of work that began in 2019 with the selection of the Scientific Advisory Committee, which drafts recommendations for the U.S. Department of Agriculture and the Department of Health and Human Services.

The latest update to the guidelines restates dairy’s importance to diet. Highlights include:

  • A recommendation of three servings of dairy in the Healthy U.S. Eating pattern and Healthy Vegetarian Eating patterns, in keeping with past guidelines
  • Dairy’s continued recognition as a distinct food group
  • A recognition that Americans aren’t consuming enough dairy to meet their nutritional needs
  • Dairy’s reaffirmation as a source of four nutrients of public health concern, including potassium, calcium, and vitamin D, as well as iodine for pregnant women.
  • A recommendation of milk, yogurt, and cheese in the first-ever healthy eating patterns geared toward infants and toddlers ages birth to 24 months

“The panel’s recognition that dairy is a key source of ‘nutrients of concern’ in U.S. diets is especially important,” Mulhern said. “During a time of food insecurity and concerns about proper nutrition among Americans, dairy is a readily accessible solution to clearly identified public-health challenges. Dairy farmers work hard to be part of that solution, and the panel’s recognition of the nutritional importance of dairy is greatly appreciated.”

The Dietary Guidelines for Americans have significant implications for numerous government policy areas, including guiding the types of milk served in school meal programs and setting the parameters for how nutrition programs are implemented and developed.

Key Dairy Wins in COVID-19 Legislation Bear NMPF Fingerprints

Posted on by Theresa Sweeney

Dairy farmers secured significant gains in 2020’s final major piece of legislation – a long-awaited COVID-19 stimulus and government funding bill that bore NMPF’s fingerprints.

The additional assistance to the dairy economy came on top of more than $5 billion in funds already secured for milk producers in large part because of the close work of NMPF and its member cooperatives with lawmakers.

“With difficult months of the pandemic still ahead, it was crucial for lawmakers to come to a bipartisan agreement that helps farmers do what they do best: feed families,” said Jim Mulhern, NMPF president and CEO, in a statement released after congressional passage. “To do this, they need financial stability and ways to connect to families in need. We thank Congress for its leadership, and we look forward to working with USDA in implementing this legislation. Importantly, this package includes nearly $1 billion in targeted support to help dairy producers continue to feed families throughout these difficult times.”

Highlights of the package include:

  • A Dairy Donation Program – $400 million for a new NMPF-backed Dairy Donation Program open to all producers to help dairy stakeholders and non-profits work together to provide dairy products to food-insecure households and minimize food waste. NMPF is grateful to Sen. Debbie Stabenow (D-MI) and Rep. Collin Peterson (D-MN) for their leadership in securing this and other dairy provisions in the package.
  • Flexibility on payment limits – Dedicated funding to allow USDA to provide additional compensation to producers who were unable to receive the full support they needed under the Coronavirus Food Assistance Program on account of payment limitations. NMPF thanks Rep. Mike Conaway (R-TX) for advocating for this provision, as well as the many members who have sought flexibility on this front all year long including Sens. Jerry Moran (R-KS) and Dianne Feinstein (D-CA) and Rep. Jim Costa (D-CA).
  • Supplemental DMC payments – Supplemental Dairy Margin Coverage payments for farms that have increased their DMC production history since 2014. These payments will be based on the difference between the farm’s 2019 actual production and its DMC production history. While the provision is targeted to smaller operations, it will enhance the farm bill baseline for all dairy farmers as it runs concurrently with DMC up to 2023.
  • Paycheck Protection Program improvements – The bipartisan, NMPF-backed Paycheck Protection for Producers Act was included in the bill. The initiative would make the Paycheck Protection Program work better for sole-proprietor, independent contractor, and self-employed dairy farmers by allowing them to use their 2019 gross income to determine their PPP loan amounts. NMPF commends Sens. John Thune (R-SD) and Tammy Baldwin (D-WI) and Reps. Ron Kind (D-WI), Glenn ‘GT’ Thompson (R-PA), Anthony Brindisi (D-NY), and John Joyce (R-PA) for their work on this measure.

Dairy producers will also be eligible for support in the $11 billion agricultural disaster assistance package Congress has included in the legislation, with additional details expected in coming days. Of note, at least $1.5 billion of this package is dedicated to additional product purchases. USDA has announced a fifth round of the Farmers to Families Food Box program using this funding. NMPF will be working closely with USDA and Congress on implementation of this package as well as on subsequent rounds of relief.

Dietary Guidelines Good for Dairy, Hanselman Says

Posted on by Theresa Sweeney

Newly released federal dietary guidelines will benefit dairy, even as work remains to be done, said Miquela Hanselman, NMPF’s regulatory affairs manager, in a podcast released today.

“Dairy is in a good place,” Hanselman said. “Three servings of low-fat and non-fat dairy are continued to be recommended in the healthy U.S. and vegetarian diets, and dairy remained its own group. In addition, dairy was recognized as a source of under-consumed nutrients, which are also known as nutrients of public health concern.”

Hanselman also discusses the need to incorporate up-to-date research on dairy in fats in the next round of guidelines and talks about their impact on encouraging the next generation of milk-drinkers. To listen to the full discussion, click here. You can also find this and other NMPF podcasts on Apple Podcasts, Spotify,  SoundCloud and iHeart Radio. Broadcast outlets may use the MP3 file. Please attribute information to NMPF.

Dietary Guidelines Reaffirm Dairy’s Crucial Nutritional Benefits; Fats Review Urged for 2025

Posted on by Theresa Sweeney

The National Milk Producers Federation praised USDA and HHS today upon the release of the 2020-2025 Dietary Guidelines for Americans (DGA), which reaffirmed dairy’s central role in diet as a provider of essential nutrients that are often under-consumed in American diets. NMPF also pledged to continue efforts to broaden consideration of the latest science on dairy fats in the next examination of the federal guidelines, which are released twice each decade.

“USDA and HHS deserve praise for once again recognizing just how vital dairy is to the nation’s health and well-being,” said Jim Mulhern, president and CEO of NMPF. “We encourage them to affirm that role even more clearly in the next iteration of the Dietary Guidelines, to reflect the positive contribution of dairy fats in diets that’s increasingly recognized in a growing body of evidence.”

The guidelines culminate nearly two years of work that began in 2019 with the selection of the Scientific Advisory Committee, which drafts recommendations for the U.S. Department of Agriculture and the Department of Health and Human Services.

The latest update to the dietary guidelines restates dairy’s importance to diet. Highlights include:

  • A recommendation of three servings of dairy in the Healthy U.S. Eating pattern and Healthy Vegetarian Eating patterns, in keeping with past guidelines
  • Dairy’s continued recognition as a distinct food group
  • A recognition that Americans aren’t consuming enough dairy to meet their nutritional needs
  • Dairy’s reaffirmation as a source of four nutrients of public health concern, including potassium, calcium, and vitamin D, as well as iodine for pregnant women
  • A recommendation of milk, yogurt, and cheese in the first-ever healthy eating patterns geared toward infants and toddlers ages birth to 24 months.

“The panel’s recognition that dairy is a key source of ‘nutrients of concern’ in U.S. diets is especially important,” Mulhern said. “During a time of food insecurity and concerns about proper nutrition among Americans, dairy is a readily accessible solution to clearly identified public-health challenges. Dairy farmers work hard to be part of that solution, and the panel’s recognition of the nutritional importance of dairy is greatly appreciated.”

The Dietary Guidelines for Americans have significant implications for numerous government policy areas, including guiding the types of milk served in school meal programs and setting the parameters for how nutrition programs are implemented and developed.

NMPF Thanks Congress for Dairy Provisions in COVID Assistance Package

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) thanked Congress today for the positive steps it is taking through COVID relief legislation to assist dairy farmers who have faced unprecedented market volatility while working every day to nourish struggling families.

“With difficult months of the pandemic still ahead, it was crucial for lawmakers to come to a bipartisan agreement that helps farmers do what they do best: feed families. To do this, they need financial stability and ways to connect to families in need. We thank Congress for its leadership, and we look forward to working with USDA in implementing this legislation. Importantly, this package includes nearly $1 billion in targeted support to help dairy producers continue to feed families throughout these difficult times,” said Jim Mulhern, NMPF president and CEO.

Highlights of the pandemic legislative package for dairy producers include:

  • Dairy Donation Program – the measure provides $400 million for a new NMPF-backed Dairy Donation Program to help dairy stakeholders and non-profits work together to provide dairy products to food-insecure households and minimize food waste. This program is carefully balanced and is open to all dairy products. NMPF is grateful to Senator Debbie Stabenow (D-MI) and Rep. Collin Peterson (D-MN) for their leadership in securing this and other dairy provisions in the package.
  • Payment Limits Flexibility – the bill includes dedicated funding to allow USDA to provide additional compensation to producers who were unable to receive the full support they needed under the Coronavirus Food Assistance Program on account of payment limitations. NMPF thanks Rep. Mike Conaway (R-TX) for advocating for this provision, as well as the many members who have sought flexibility on this front all year long including Sens. Jerry Moran (R-KS) and Dianne Feinstein (D-CA) and Rep. Jim Costa (D-CA).
  • Supplemental DMC Payments – the measure establishes Supplemental Dairy Margin Coverage payments for farms that have increased their DMC production history since 2014. These payments will be based on the difference between the farm’s 2019 actual production and its DMC production history. While the provision is targeted to smaller operations, it will enhance the farm bill baseline for all dairy farmers as it runs concurrently with DMC up to 2023.
  • Paycheck Protection Improvements – the bill includes the bipartisan NMPF-backed Paycheck Protection for Producers Act which would make the Paycheck Protection Program work better for sole proprietor, independent contractor, and self-employed dairy farmers by allowing them to use their 2019 gross farm income to determine their PPP loan amounts. NMPF commends Sens. John Thune (R-SD) and Tammy Baldwin (D-WI) and Reps. Ron Kind (D-WI), Glenn ‘GT’ Thompson (R-PA), Anthony Brindisi (D-NY), and John Joyce (R-PA) for their work on this measure.

Dairy producers will also be eligible for support in the $11 billion agricultural disaster assistance package Congress has included in the legislation, with additional details expected in coming days. Of note, at least $1.5 billion of this package is dedicated to additional product purchases.

NMPF has served its members as the leading advocate for U.S. dairy farmers throughout the coronavirus pandemic. It has also been an industry leader in providing useful informational resources for the dairy sector.

Dairy is Defined by Giving This Unique Holiday Season

Posted on by Theresa Sweeney

This year of COVID-19 has been difficult for dairy, just as it has for everyone else. But difficult times also bring out what’s best in people, and that’s certainly true among dairy farmers and the cooperatives they own. That cooperative spirit of serving others helps define dairy.

Examples of dairy doing good abound this year. This week’s Dairy Defined spotlights just some of the work done NMPF member cooperatives and their farmer-owners, each example highlighting the work dairy farmers do every day to serve others. The list– ranging from individual efforts to nationwide campaigns – is far from complete, of course. If you know of other stories that should be told, write us at info@nmpf.org with links and photos so we can add to this list!

Happy holidays. We look forward to being part of dairy’s continued commitment to improving lives in 2021.

READ IT HERE

NMPF’s Mulhern Speaks on Tom Vilsack’s Nomination to Lead USDA

Posted on by Alan Bjerga

NMPF President and CEO Jim Mulhern talks about Tom Vilsack’s nomination to become USDA Secretary on Brownfield Ag News. “He has a deep understanding of our industry and frankly, I think a deeper understanding of all of U.S. agriculture,” Mulhern says in the broadcast.

NMPF excited for Vilsack’s White House return

Podcast: Sen. Pat Roberts on His Past and Agriculture’s Future

Posted on by Theresa Sweeney

Senate Agriculture Committee Chairman Pat Roberts is leaving Congress after 40 years in January. The only person to lead both the House and Senate agriculture committees takes with him a wealth of wisdom in agriculture policy – but also holds optimism for agriculture’s ability to get things done in an environment of difficult challenges.

“I would just say that I am very confident that the people who will be taking my place, they have a lot of experience,” Roberts said in a Dairy Defined interview released today. “They’re good folks. I think the same attempt, at least, with regards to making it bipartisan, will continue.”

Roberts, who first came to Washington as a congressional staffer a half-century ago, also reflects on the two farm bills he led — 1996’s Freedom to Farm law and the 2018 bill — as well as one area where he wished he could have done more: his leadership of the Senate Intelligence Committee during the Iraq War. He also said he doesn’t consider his career to be over – without revealing plans, he said that when it comes to farm policy, “I intend to have my finger in the pie somewhere.”

To listen to the full discussion, click here. You can also find this and other NMPF podcasts on iHeartRadio, Apple Podcasts, Spotify,  SoundCloud and Google Play. Broadcast outlets may use the MP3 file. Please attribute information to NMPF.