The Dietary Guidelines for Americans Committee’s scientific report reaffirms dairy’s important role in a healthy diet, but government officials need to take into account evolving science that shows the benefits of dairy fats when it releases its final report, said Miquela Hanselman, NMPF’s manager for regulatory affairs, during a virtual meeting of the U.S. Department of Agriculture and the Department of Health and Human Services discussing the report August 11.

“The committee, correctly in our view, maintained dairy as its own group and did not allow the inclusion of any plant-based beverages or foods other than fortified soy beverage,” Hanselman said.

The committee also acknowledged dairy’s unique and important nutritional package and included it in food recommendations developed for children ages 6-24 months, the first time the panel gave that age group a specific focus. Still, the committee’s work is unfinished, Hanselman said. While pleased with most of the committee’s work, NMPF was disappointed that the committee didn’t include newer science on dairy fats that would better place full-fat dairy products within the healthy eating patterns the committee identified.

In addition to submitting both written and oral comments to USDA and HHS, NMPF also created a Call-to-Action, rallying 186 dairy advocates to reaffirm dairy’s positive role in the diet and ensuring that dairy’s specific concerns provide a distinct flavor to the full buffet of comments government officials will review as they craft the final 2020 Dietary Guidelines for Americans. That document is expected to be released later this year.

The United States-Mexico-Canada Agreement (USMCA) is poised to bring tangible benefits to America’s dairy farmers and cooperatives, but only if its dairy-related provisions are fairly implemented and fully enforced.

A broad, bipartisan coalition of lawmakers in August asked the U.S. government to ensure that Canada and Mexico uphold their trade obligations. Two letters were sent by lawmakers in the House and Senate.

The August 13 House letter was signed by a broad bipartisan coalition of 104 lawmakers, led by Representatives Ron Kind (D-WI), Tom Reed (R-NY), Collin Peterson (D-MN), Glenn “GT” Thompson (R -PA), Anthony Brindisi (D-NY), Russ Fulcher (R-ID), Xochitl Torres Small (D-NM), and Anthony Gonzalez (R-OH).

Senators Tina Smith (D-MN) and Mike Crapo (R-ID) spearheaded a second letter signed by a bipartisan group of 25 Senators on August 25, writing that “It is imperative that Canada and Mexico deliver upon their agreed upon commitments related to dairy products.”

“USMCA is a modernized trade deal that represents new opportunities for our farmers and processors after years of rural recession and the new challenges presented by the current crisis. We must utilize USMCA’s enforcement mechanisms to bring home its hard-fought wins for America’s dairy farmers,” said Jim Mulhern, president and CEO of NMPF, following the House letter.

Specific provisions of concern to U.S. dairy highlighted in each letter include Canada’s administration of its dairy TRQs, the full and transparent elimination of Classes 6 and 7 and related dairy pricing program disciplines, and the enforcement of side-letter agreements with Mexico that protect market access for U.S. common names cheeses.

With talks on a new round of federal stimulus to deal with the economic effects of this year’s coronavirus pandemic stalled, NMPF is urging USDA to make the best use of the funds it already has while continuing to prod Congress toward further funding.

NMPF joined 27 other agricultural organizations on a letter Aug. 7 urging Agriculture Secretary Sonny Perdue to extend the Coronavirus Food Assistance Program’s (CFAP) August 28 sign-up deadline and to exercise additional flexibility in payments to producers.  NMPF included language in the letter urging USDA to take a fairer approach to CFAP’s direct attribution rules and to the treatment of farms held in trust as corporations, to maximize benefits to dairy farmers of all sizes. NMPF also added language to the letter urging reconsideration of the CFAP payment limitation as a path forward is contemplated for spending the additional $14 billion provided to the Commodity Credit Corporation.

USDA responded to the letter with an extension of the CFAP sign-up deadline to Friday, September 11.

When Congress adjourned for its annual August recess, negotiations between Republicans and Democrats over a fifth round of coronavirus relief had stalled, with House Speaker Nancy Pelosi (D-CA) and Senate Democratic Leader Chuck Schumer (D-NY) meeting frequently with White House Chief of Staff Mark Meadows and Treasury Secretary Steven Mnuchin in attempts to reach a bipartisan agreement on another relief package.

The two parties’ respective opening offers were the House-passed HEROES Act and the Senate Republicans’ HEALS proposal.  Issues ranging from unemployment benefits to state and local aid have dogged negotiations, but agriculture is unlikely to be a major stumbling block to reaching a deal. NMPF will continue to advocate for equitable dairy disaster assistance to producers of all sizes and for enhanced milk donation opportunities and robust government purchases of dairy items.

NMPF will continue to work closely with the Department and its allies in Congress to secure better treatment for producers under existing and subsequent rounds of coronavirus-related assistance to producers.

The long wait for normalcy that’s only growing longer as the COVID-19 pandemic reaches its half-year mark of disruption is excruciating for many farmers and their families.

They’re waiting to see when schools reopen nationwide. Waiting for the latest news on a coronavirus vaccine. Waiting for the conclusion of a difficult political season. And, for dairy farmers struggling through a rollercoaster year, waiting to see whether Congress can come to agreement on disaster assistance that may at least somewhat salvage bottom lines damaged by ongoing economic disruptions.

But waiting doesn’t mean being passive; knowing that much is beyond anyone’s control doesn’t mean giving up on trying to improve farmer lives. Pursuing those improvements for our members is what we do in Washington. And even as elected officials start thinking more about November ballots (or September and October ballots, this mail-driven election season) than legislation, much can be done to address the needs of dairy as we continue the struggle to weather this pandemic.

First things first: Despite valuable and important measures to date, dairy’s economic situation remains precarious. USDA’s badly needed CFAP program has bolstered many farmers’ cash flows (and its deadline for application has been extended to Sept. 11, thanks to USDA heeding the requests of NMPF and other agriculture groups), and economic stimulus in the form of USDA dairy-product purchases for distribution to struggling families did wonders for dairy markets in the dark days of April through June.

Those efforts, combined with proactive actions from farmers and cooperatives to better align supply with pandemic-depleted demand, fueled a rebound as dramatic as the decline. The comeback was so decisive, in fact, that normal price swings fell momentarily out of whack, with record-shattering cheese prices outpacing fluid-milk gains to the point of triggering negative Producer Price Differentials (PPDs) in milk checks in June and July.

It’s important to remember that, while it is frustrating to see negative PPDs, they have been the product of a rapidly improving price picture – a sign of a real market recovery that occurred when forceful measures needed to work, and did. Without the actions that created the price recovery there would have been no or very small negative PPDs, but overall milk prices would have been much lower.

And the phenomenon will be short-lived as relative prices among different classes of milk return to more normal relationships. But even here, there’s a rub. Part of the reason negative PPDs will shrink is because cash cheese prices fell hard from mid-July and into the first part of August and will take milk prices back down when this drop shows up in milk checks. The possibility remains that Dairy Margin Coverage payments, which at one point seemed likely to be limited to spring months, may be triggered again later this year.

Based on current price calculations, dairy-farmer income in September could be quite a bit less than it was in July because of lower product prices, making the outlook for the rest of the year more challenging than producers were hoping for in mid-summer. That brings policy needs into clearer focus and makes additional disaster assistance a higher priority.

Congress still has time to – and must – pass another COVID-19 relief package when lawmakers return this month. Negotiations have stalled over several issues, including the scope and duration of enhanced unemployment benefits as well as state and local aid. Fortunately, both the House-passed HEROES Act and the Senate-proposed HEALS Act both include additional funding for agriculture. The HEROES Act provides greater specifics, including:

• Authorizing additional direct payments based on second-quarter losses without imposing payment limits;
• Creating a new dairy donation program to help farmers and consumers;
• And making enhancements related to the Dairy Margin Coverage program.

While the HEALS Act does not include specific directives, it does provide new funding to USDA, which will allow for additional disaster aid. Along with resolving these differences, negotiators also must determine the fate of additional nutrition assistance that’s important to helping the millions of Americans who face food insecurity and need dairy to nourish their families.

NMPF is advocating for additional relief for dairy producers that reflects the losses they have suffered, no matter the size of an operation. We are also working with Congress on a dairy donation program that can maximize dairy consumption among food-insecure populations.

Direct purchases of dairy products for distribution to consumers in need is a win-win, and they will be critically important. Disaster assistance paid directly to producers is very helpful and always appreciated; still, the market price impact on all milk production through well-targeted purchases ripples through the entire rural economy, stabilizing markets and maintaining key links on the chain from farm to fork that benefit everyone.

We of course are working for assistance on all fronts – but we know from long experience just how powerful a tool these product purchases can be.

Assistance continues to be needed, and we know how effective it can be. It’s as important as ever for Congress to act and for USDA to use the tools it has available. Despite headlines, the end of this crisis is not yet in sight. Our efforts will continue through the long haul.

The critical role that U.S. dairy exports play in Wisconsin’s economy and beyond took center stage at a virtual town hall today. This town hall was co-hosted by the National Milk Producers Federation (NMPF), the U.S. Dairy Export Council (USDEC) and Farmers for Free Trade, a coalition of pro-trade farm organizations, as part of an ongoing series titled AgTalks.

Tom Vilsack, president and CEO of USDEC, moderated the event, which featured panelists from across all aspects of Wisconsin’s dairy supply chain. The clear consensus of the panelists was that expanding dairy trade opportunities will bring tangible benefits to America’s dairy farmers, processors, exporters and rural communities.

“America’s dairy farmers help produce high-quality dairy products that are renowned around the world. These exports drive economic growth here at home and create new jobs in rural communities that have borne the brunt of years of recession. We cannot accept unjust trade barriers that limit our export dairy market access. The dairy industry in Wisconsin, and across the country, is counting on the U.S. government to help open new doors and strengthen our international supply chains through a robust and forward-leaning trade policy,” said Jim Mulhern, president and CEO of NMPF.

“It is important that policymakers continue to not only advance new trade agreements to further open markets for U.S. dairy, but also enforce the agreements that are already on the books. We know that dairy exports will help build a brighter future for our industry, from the thousands of proud Wisconsin dairy farmers to the multi-generation business exporting world-class cheeses abroad. It was an honor to moderate this important discussion and I am grateful to our panelists for their timely insights into what matters the most to U.S. dairy at this critical juncture,” said Tom Vilsack, president and CEO of USDEC.

“We are proud to be a family-owned business with a long legacy of sharing Wisconsin dairy with the world. We would like to continue serving customers around the world, but unfair rules and unbalanced trade relationships have at times made expanding exports difficult. This harms our dedicated workers and our supplying farmers. Preserving and growing dairy exports is not just an economic issue, it’s a people issue,” said Jeff Schwager, President of Sartori Cheese.

“It’s true what they say: America’s farmers feed the world. Wisconsin dairy farmers are proud to be a part of this agricultural tradition. Our farming families produce nutritious and wholesome milk that ends up in dozens of international markets as ingredients or dairy products. It is important that the U.S. government continue to work towards fairer trade rules, and we’ll continue to provide Wisconsin milk to help feed families around the world,” said Chad Vincent, CEO of Dairy Farmers of Wisconsin.

“The current health care crisis has highlighted the resiliency of America’s dairy farmers and the importance of ensuring that U.S. dairy products can continue to move smoothly to overseas markets. It is critical that our lawmakers support our hardworking dairy farmers by continuing to fight for fair trade and the smooth export of American-made dairy products,” said Jeff Lyon, CEO, FarmFirst Dairy Cooperative.

“Wisconsin is proud to be known as America’s Dairyland. Our dairy farmers, cooperatives and processers are an integral part of our state’s culture and a cornerstone of our economy. Trade is key to the health of Wisconsin’s dairy industry and its critical that we all work together to keep Wisconsin dairy exports moving,” said Randy Romanski, Secretary-designee of the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP).

U.S. dairy exports and the crucial role they play will take center stage today starting at noon Eastern Time/11 a.m. Central Time at a virtual town hall featuring NMPF President and CEO Jim Mulhern and moderated by Tom Vilsack, president and CEO of the U.S. Dairy Export Council.

Interested media and members of the public can still register here to attend the event.

“America’s dairy farmers help produce high-quality dairy products that are renowned around the world,” said Mulhern in prepared remarks for the town hall, part of an ongoing series titled AgTalks featuring discussions of trade and the rural economy co-hosted by the two organizations and Farmers for Free Trade, a coalition of pro-trade farmer groups.

“These exports drive economic growth here at home and create new jobs in rural communities that have borne the brunt of years of recession,” Mulhern said. “We cannot accept unjust trade barriers that limit our export dairy market access.”

Each AgTalks event has focused on a different state, with today’s talk focused on Wisconsin. Also speaking at the event are Jeff Schwager, President of Sartori Cheese; Chad Vincent, CEO of Dairy Farmers of Wisconsin; Jeff Lyon, CEO, FarmFirst Dairy Cooperative; and Randy Romanski, Secretary-designee of the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP).

More information on AgTalks can be found here.

The coronavirus crisis is far from over, but the food supply chain has adapted effectively, said Clay Detlefsen, chief counsel for the National Milk Producers Federation and the private-sector chair of the Food and Agricultural Sector Coordinating Council, in an NMPF podcast.

Early challenges in acquiring enough Personal Protective Equipment and redesigning workplaces to keep workers safe have been largely met, but the continued circulation of the virus itself makes it challenging for businesses to be completely confident disruptions may be avoided, Detlefsen said. Progress continues in making sure supplies are manufactured in adequate quantities, as well as in understanding how the virus is spread and how to prevent it.

“We’ve got the food industry on the right track. It wasn’t easy. It won’t be easy to keep us there, especially if this mushrooms this fall with the flu virus mixing into the equation,” Detlefsen said. “We’ve got our challenges ahead for sure. There’s no reason to celebrate, but there’s no reason to be pessimistic either. We will get through this.”

The Food and Agricultural Sector Coordinating Council was set up after the Sept. 11, 2001 terror attacks to share information between government agencies and private businesses during crises that affect the U.S. food-supply chain. To listen to the full discussion, click here. You can also find this and other NMPF podcasts on Apple Podcasts and Spotify.  Broadcast outlets may use the MP3 file. Please attribute information to NMPF.

 

Dairy farmers are eligible for direct support through USDA’s Coronavirus Food Assistance Program (CFAP). CFAP offers direct financial assistance to agricultural producers, providing them the ability to weather the economic uncertainty caused by COVID-19. Dairy producers not enrolling in the CFAP will miss out on millions of dollars of financial aid aimed at helping them deal with low prices in 2020.

USDA is accepting CFAP applications through Friday, September 11. Visit www.farmers.gov/cfap to determine your eligibility and to apply for assistance.

 

Apply for the Coronavirus Food Assistance Program

USDA’s Farm Service Agency (FSA) offers multiple ways for you to apply for CFAP to meet your business needs. These include:

• Apply Online: Producers with an eAuthentication account can now apply for CFAP via USDA’s CFAP Application Portal. Step-by-step instructions are available in the CFAP Application Portal User Guide. Applications are completed, electronically signed, and submitted directly to a local Service Center through this online system. Producers interested in creating an eAuthentication account should visit gov/sign-in to learn more. Producers without an eAuthentication account also have the option of signing and sharing their CFAP applications online using our new document signature solutions initiated by Service Center staff.

• Manually Complete Applications: Producers who are interested in filling out the CFAP application manually can download the application form, AD-3114, to fill out and return to the FSA office at their local USDA Service Center. If you need more space, you should use the AD-3114A continuation form. Instructions for form AD-3114 and AD-3114 continuation are available for producers to reference when filling out both forms.

• Fill Application with Payment Calculator: USDA’s CFAP Application Generator and Payment Calculator is an Excel workbook that allows producers to input information specific to their operation to determine estimated payments and populate the application form, which you can then print, sign, and submit to the FSA office at your local USDA Service Center. Microsoft Excel is required to use this workbook. A video preview with more information is available here.

 

Assistance with Applying

While most USDA Service Centers are open for business by phone appointment only, FSA is working with producers by phone and using email and online tools to process CFAP applications. Please call the FSA office at your local USDA Service Center to schedule an appointment if you’d like assistance or have questions. Producers can find contact information for their local USDA Service Center here.

A CFAP Call Center is available for producers who would like additional one-on-one support with the CFAP application process. Please call 877-508-8364 to speak directly with a USDA employee ready to offer assistance. The CFAP Call Center can provide service to non-English speaking customers.

 

Supplemental Resources:

• USDA’s Coronavirus Food Assistance Program: Frequently Asked Questions by Dairy Farmers
• What Dairy Farmers Need to Know About the Coronavirus Food Assistance Program
• CFAP for Dairy Producers Fact Sheet
• Coronavirus Food Assistance Program FAQ

Visit www.farmers.gov/cfap for additional information about CFAP and www.nmpf.org/coronavirus for a full listing of coronavirus resources for dairy farmers and co-ops. Please email info@nmpf.org with questions or comments about CFAP and how it is being administered by your local FSA office.

A bipartisan group of 25 Senators today sent a letter identifying challenges with implementing several dairy-related provisions in the United States-Mexico-Canada Agreement (USMCA). Underscoring USMCA’s importance to the dairy industry, the letter asks the U.S. government to use USMCA’s enforcement measures to ensure full compliance with the trade deal.

The letter, led by Sens. Tina Smith (D-MN) and Mike Crapo (R-ID), was sent to the U.S. Trade Representative’s Office and the U.S. Department of Agriculture. It reads, in part:

“As negotiated, the USMCA will create new export opportunities for America’s dairy industry and creates an equitable playing field for American dairy exports in Mexico and Canada. Given the importance of these provisions to our dairy farmers and to American dairy exports, we ask that you use USMCA’s enforcement measures to hold our trading partners accountable to their trade commitments. It is imperative that Canada and Mexico deliver upon their agreed upon commitments related to dairy products.”

The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) commend the coalition of Senators for standing up for America’s dairy farmers, processors and exporters and pressing for fair and full implementation of USMCA’s dairy provisions.

“Canada has already begun implementing USMCA in a way that thwarts its market access promises and prevents U.S. dairy from making full use of the benefits that Congress and the Administration fought so hard to secure. There are also unanswered questions concerning how Mexico will translate its commitments to safeguard common name cheeses into action. These are unresolved concerns that affect everyday dairy farmers and workers across our industry. I appreciate Senator Smith and Senator Crapo’s proactive engagement and leadership on this letter underscoring that USMCA provides the tools necessary to take enforcement measures now,” said Tom Vilsack, president and CEO of USDEC.

“Timely and complete enforcement of USMCA’s dairy-related provisions will allow America’s dairy industry to harness the full potential of this modernized trade agreement. This letter sends a strong message to Canada and Mexico: Efforts to maintain unjust trade practices or block market access will not be tolerated. This bipartisan support for fairer dairy trade in North America also demonstrates not only the importance of exports to America’s dairy farmers, but the key role that dairy plays in our national economy. Thank you, Senator Smith and Senator Crapo, for your leadership and support of a critical industry,” said Jim Mulhern, president and CEO of NMPF.

Earlier this month, a bipartisan coalition of 104 Representatives also sent a letter urging the U.S. government to fully enforce USMCA.

Farming isn’t short of challenges these days. From record price volatility to tragic weather events to the ongoing crisis of coronavirus that’s shaping every aspect of lives and economies, milk producers face so many unprecedented situations that the word “unprecedented” itself seems inadequate to describe the full scope of the situation.

But for most dairy farmers, at least some of their burden is lessened by their membership in a cooperative, which provides them with services, support and representation on important issues. That membership gives them more time and energy to focus on what they do best: operate their farms to provide the high-quality products the nation and world needs.

Dairy co-ops aren’t all the same. They range from nationwide powerhouses to local groups with small customer bases, from Fortune 500 companies to regional treasures. But all of them are much more than just the truck that stops to pick up a farmer’s milk. (Although dairy cooperatives do add up to a lot of trucks — according to a twice-a-decade USDA survey, cooperatives handled 85 percent of U.S. milk in 2017, a number that’s held steady for 25 years.) They’re also a farmer’s:

• Milk marketing agent and product developer, seeking the best buyers and ensuring that milk becomes a product a consumer wants to buy;
• Supply-chain manager, helping provide lower cost goods and services that make farms more successful;
• Financial analyst and economist, helping farmers manage risk and understand milk pricing issues;
• Technical expert providing input on best practices, including animal care, environmental and other programs, both public and private, working on behalf of all cooperative members to address customer and marketplace concerns; and, the co-op also is a
• Voice on policy, navigating state and federal laws and regulations to work for positive solutions.

All of this is directed by the farmers – the cooperative’s owners – through democratic voting structures that give everyone in a cooperative a voice within the body they own, one that previous generations of farmers have set up to fight for them. That’s the truest, most basic form of representative government, one in keeping with the most cherished American political traditions. Cooperatives give farmers a vehicle to help themselves by effectively performing tasks on behalf of their members that would be more difficult – or impossible – to manage alone. That frees up farmers to face the challenges that inevitably fall on their own shoulders – the tasks of caring for their cows, building their businesses, leading their own communities, and serving the world through the essential products they provide.

These days, doing all that takes a lot. Cooperatives have proven their value this year in large, and dramatic, ways – by helping to better align supply and demand that contributed to a record price rally and turned some very dark days into days that, while still difficult, have improved farmers’ financial standing. They have proven their value in thousands of small, individual ways as well, from timely market insights to the day-to-day, basic task of ensuring that milk producers have a guaranteed market at a time when farmers are increasingly realizing that can’t always be taken for granted.

Farming can be a lonely calling. But co-op farmers don’t face it all alone. Especially in dairy, where cooperative membership is the norm, farmers routinely pool resources, collect expertise, and provide services that help one another succeed. And in that spirit, they then can speak with a united voice on matters that affect them all. We at the National Milk Producers Federation are proud to be the voice of dairy cooperatives in Washington, harnessing the power of farmers who individually meet the challenges they face each day – and together contribute to the successes of all.

NMPF Senior Vice President of Membership Services and Strategic Initiatives Chris Galen discusses the Coronavirus Food Assistance Program (CFAP) and how dairy farmers can enroll, as well as concerns regarding the implementation of USMCA on Dairy Radio Now.