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Dairy Has Persevered Through a Successful Year

Posted on by Rachel Ravencraft

Note: These remarks are adapted from NMPF President & CEO Gregg Doud’s remarks at NMPF’s annual meeting in Phoenix, Oct. 22, 2024.

In reflecting on where we were a year ago in this industry, it wasn’t very pretty in terms of prices. There wasn’t a lot of optimism. We have experienced several stressful headlines and considerable market risk in the last year, but look at where we are now. The situation has greatly improved — but there is still work to be done.

Let’s start with the long-overdue update of USDA’s Federal Milk Marketing Orders. Then there is the ongoing revamp of the Cooperatives Working Together program (yes, we need to come up with a new name) to make our dairy exports more competitive. We didn’t sign up for H5N1, but it’s here, and we have to deal with it. The Farm Bill, the Dietary Guidelines and ongoing efforts regarding trade issues – they have all been big challenges this year and we cannot let our guard down for a minute in the months ahead. Importantly, we have a tremendous team in Washington. They are rock solid and up for the task.

And that’s critical in areas such as Federal Milk Marketing Order modernization. As I was just coming on board, I went to a couple of the hearings in Carmel, IN. And although I’m an ag economist, it gave me a headache. What a challenging conversation. But what I also saw was the unbelievable expertise and leadership of numerous NMPF members. Our unanimous message made all the difference. It forced the government to listen.

We’ve seen similar impressive accomplishments on Capitol Hill as well. Late last year we had one of the most interesting votes I’ve seen in 32 years in Washington, when the House of Representatives voted 330 to 99 to put whole milk back in schools. This was a situation where some good old-fashioned shoe-leather lobbying, where you sit down with a member of Congress and say, ‘This is the science. This is the better product. We need to put whole milk back in schools.’ The result was that a majority of both Democrats and Republicans in the House, 330 to 99, agreed. Unfortunately, we have yet to be successful in the Senate on this important issue — but the year isn’t over.

I’m not sure when we’re going to pass the Farm Bill. It could be in the lame duck. It could be next year. It could be the year after. Regardless of who is in the White House or Congress next year, the 2025 congressional agenda complicates the Farm Bill legislative process. The next Congress will likely start by navigating issues such as the debt ceiling, budget reconciliation and executive branch nominations. However, the huge issue will be the five-year expiration of our tax code. The “delta” or difference in terms of the Farm Bill and what we’re debating over is about $10 billion when it comes to reference prices. My understanding is, if Congress does nothing in 2025 on taxes, on Jan. 1, 2026, the tax bill for everyone in this country goes up by $5 trillion. This will be the first big debate of the next Congress and, for the farm economy, it dwarfs any other issue. A reasonable expectation is that this discussion will consume the first half of next year, leaving the Farm Bill debate for the last half of the year, squeezed between the process of approving appropriations bills.

We also have to continue to pay close attention to H5N1. Sometimes when we make investments in animal disease preparedness, we’re not sure if the event will ever actually occur. One of those investments, via the checkoff, we made a while back was in terms of foot and mouth disease, and people said, ‘We haven’t had that in nearly a hundred years, why are we investing in that?’

In reality, this little bit of foresight paid huge dividends this year. When H5N1 hit, we pulled these biosecurity plans off the shelf, we adapted them to this virus, and we plugged them in for a webinar for 1,300 people in this industry, in three days — an unbelievable accomplishment. When we look back to the lessons learned on H5N1, this initial investment, and the subsequent on-farm biosecurity implementation efforts that were a result, made a big difference. We must continue to look around the corner to determine what new investments must be made to ensure we’re ready for the next event, whatever that might be.

On the regulatory side, we’ve been investing in the fight against plant-based beverage mislabeling, and we’ve been proactive on the Dietary Guidelines and other nutrition issues. The team effort with incredible dairy nutrition research coming from the checkoff side, along with numerous industry partnerships along the way has been terrific. We’re going to continue to make our case respectfully, but we are not going to give an inch.

We continue to lead and innovate with improvements in our FARM Program and the ongoing work with the U.S. Dairy Export Council on these always thorny trade issues must be a priority to improve the demand environment for U.S. dairy, domestically and internationally.

This industry has a tremendously bright future. There’s never been a year like this year, in terms of headline risk in the agricultural commodity business. My contemporaries talk about this all the time with wars, inflation, viruses, et cetera. Yet, despite all of this, dairy farmers have persevered and had a tremendously successful year. Our future success will also come from the roughly $7 billion in new processing investments now being made in this industry. This is an investment in you, the dairy farmers of this great nation, and for good reason!

It has been an honor to be a part of the NMPF team in Washington this past year, and I look forward to working with you, and fighting for you in Washington, going forward.

Gregg Doud

President & CEO, NMPF

 

Dairy Resilient in the Face of Natural Disasters, H5N1

Posted on by Rachel Ravencraft

Dairy farmers are remaining resilient as they manage their way through H5N1 in dairy cattle and respond to natural disasters that have devastated farms, NMPF Chairman Randy Mooney said in remarks at the organization’s annual meeting.

“Farming is hard. I said that. We all know that. But when you get hit with weather events like hurricanes, tornadoes, floods, droughts, the list goes on and on, unexpected costs, that makes it even harder,” Mooney said in his remarks Oct. 22. “You get hit with things like bird flu that a year ago we didn’t even know was a problem,” he continued. “And if you’ve been hit by one of these either weather event or something really unexpected, my heart goes out to you. These things are difficult. It puts strains on farms, put strains on families, put strains on financials.”

“Everything we do, the future is going to take a level of cooperation and coordination from all of us. And we’ve had that, but it’s going to take more than we’ve ever had,” said Mooney, a Dairy Farmers of America member-owner who farms near Rogersville, MO. “I continue to be inspired by all of you and the work that you’re doing. Amid great change and preparation for the future, we are still part of the greatest industry that there is.

Mooney also talks about the 2024 Farm Bill, efforts to modernize milk pricing, labor shortages and dairy’ need to promote exports. For more of the Dairy Defined podcast, you can find and subscribe to the podcast on Apple Podcasts, Spotify and Amazon Music under the podcast name “Dairy Defined.”

Media outlets may use clips from the podcast on the condition of attribution to the National Milk Producers Federation.

NMPF’s Galen Offers Highlights of 2024 Annual Meeting in Phoenix

Posted on by Chris Galen

NMPF’s Senior Vice President Chris Galen reviews highlights of National Milk’s 2024 annual meeting in Phoenix for the listeners of Dairy Radio Now. The annual conference, which just concluded Oct. 23, reviewed NMPF’s work this year on FMMO modernization, the farm bill, and dealing with HPAI in dairy cows.

 

NMPF Annual Meeting Spotlights Dairy Vigilance on H5N1, Advances on Milk Pricing

Posted on by Theresa Sweeney

U.S. dairy farmers are remaining resilient in the face of H5N1 influenza outbreaks while advancing in policy areas including nutrition and milk pricing, said NMPF Chairman Randy Mooney at the organization’s annual meeting held in Phoenix Oct. 21-23.

Dairy persists in its best practices in biosecurity and work with government officials, veterinarians and scientists to understand, contain and prevent Highly Pathogenic Avian Influenza in dairy cattle, Mooney said in remarks at the meeting held jointly by NMPF, the National Dairy Promotion and Research Board and the United Dairy Industry Association.

“Everything we do, the future is going to take a level of cooperation and coordination from all of us. And we’ve had that, but it’s going to take more than we’ve ever had,” said Mooney, a Dairy Farmers of America member-owner who farms near Rogersville, MO. “I continue to be inspired by all of you and the work that you’re doing. Amid great change and preparation for the future, we are still part of the greatest industry that there is.

Dairy producers in the past year have grappled with HPAI and delays on a farm bill that expired in September even as milk prices have risen and consumer demand has remained strong. Meanwhile, farm-level margins have remained at a record high for months, well above levels that trigger payments under the federal Dairy Margin Coverage program, the main producer safety net, even as dairy is poised for growth with upcoming dairy manufacturing plant expansions.

Underpinning the entire industry is USDA’s plan for Federal Milk Marketing Order modernization, which is likely to resemble a proposal released in July that incorporated key NMPF principles and would be voted on by dairy farmers early next year.

Also at the meeting, NMPF’s Board of Directors approved the organization’s policy positions and elected new members. New board members approved by NMPF delegates include:

  • Darrin Monteiro, California Dairies Inc.
  • Dan Kullot, Dairy Farmers of America
  • Kimberly Parks, Dairy Farmers of America
  • Deric Lindstrom, Ellsworth Cooperative Creamery
  • Joel Eigenbrood, Foremost Farms
  • Jon Cowell, Maola (formerly Maryland & Virginia Milk Producers Cooperative Association)

Cowell and Eigenbrood also were elected to NMPF’s Executive Committee. The board also elected Craig Caballero of United Dairymen of Arizona to serve as its secretary. In addition, Jacob Larson of Southeast Milk, Inc. was elected chairman of the Small Cooperative Caucus and, in turn, to NMPF’s Executive Committee.

The members awarded Honorary Directors for Life recognition to John Wilson and Kent Herman, both of Dairy Farmers of America; and Jay Bryant of Maola, NMPF’s outgoing secretary.

The meeting drew roughly 750 attendees and featured breakout sessions on industry topics ranging from an economic outlook to the National Dairy Farmers Assuring Responsible Management (FARM) Program’s Environmental Stewardship updates, to be released Oct. 31.

FARM Executive Director Emily Yeiser Stepp said in a breakout session on biosecurity that many practices already established have been serving dairy farms under H5N1.

“Dairy farmers and their cooperatives have developed and embraced a robust biosecurity program through the National Dairy FARM Program,” NMPF’s Emily Yeiser Stepp said. “This program has been adapted and adopted by dairy farms across the U.S. to prevent the spread of H5N1.”

Featured panelists at the meeting’s general session included Doud, who appeared with fellow dairy CEOs Barb O’Brien of Dairy Management Inc. and Krysta Harden of the U.S. Dairy Export Council, along with a session on innovative dairy revenue streams that included Brent Lilienthal, president and CEO of LF Bioenergy; Katie Cook, vice president of livestock sustainability and U.S. farm animal marketing for Elanco; and Chris Cook, head of sustainable business solutions for Syngenta.

The annual meeting is also held in conjunction with NMPF’s Young Cooperators annual meeting for younger dairy leaders, as well as NMPF’s annual cheese contest. This year’s Chairman’s Award winner was a Garden Vegetable with Sweet Basil Rub cheese from Ellsworth Cooperative Creamery in Menomonie, WI, while the Chairman’s Reserve went to Upstate Niagara Cooperative Inc. of Batavia, NY for its salted butter, in the first year butter was added to the competition.

Beef dynamics may hinder dairy herd growth

Posted on by Alan Bjerga

By Allison Wilton, Coordinator, Economic Policy & Global Analysis, NMPF

High prices are supposedly the cure for high prices. That may not be the case with beef-on-dairy.

In recent years, the popularity of crossbred calves has grown exponentially as dairy farmers faced tight margins and beef cattle fetched record prices. Margins have improved on the dairy side, but the beef market has shown few signs of cooling down, suggesting a dairy herd boom is unlikely to materialize.

The beef herd is typically cyclical in nature, even as it has steadily shrunk since the 1990s. It’s now the smallest since 1951, leaving little supply cushion when weather or markets cause disruption. Droughts in 2022 and 2023 pushed many ranchers to liquidate herds; heifer and cow cull rates climbed in 2022 (up 4.8% and 10.9%, respectively), sparking the current cycle of high prices. Today, even with sky-high beef prices, calves on the ground at the beginning of 2024 were down 2.7% from the year earlier.

With drought in decline, ranchers may be looking to rebuild their herds. But a beef supply increase will take time. It will even result in higher prices in the short term as producers retain more heifers, which typically take at least two years to calve, and it will take another two years for those calves to be processed. Beef producers also operate under similar incentives as dairy farmers where today’s prices are pushing many to eschew a herd rebuild in favor of sending calves to market as soon as possible. These factors will all constrain the supply of beef animals for the next few years and support elevated prices for dairy-beef crosses.

Is change ahead?

Even as the beef herd is likely to remain constrained for the foreseeable future, two factors could still lower prices.

First, U.S. dairy farmers’ foray into beef crosses could shift supply dynamics in the beef market. U.S. farmers and ranchers purchased 9.4 million units of beef semen in 2023, according to the National Association of Animal Breeders, double as much as just five years ago. Notably, 85% of the beef semen purchased was by dairy farmers. Those calves have only recently made it to feedlots.

Second, several high-profile announcements of new feedlots specifically designed for dairy-beef crosses are likely to further entrench dairy’s investment in beef, permanently expanding the universe of potential beef production. Dairy could possibly cool off the beef market, but dairy’s own limitations to growing its herd naturally limit how many beef calves can come from dairy without seeing the dairy herd itself expand, which then would require switching away from beef — a highly unlikely outcome.

So, the beef herd is constrained for the foreseeable future and beef-on-dairy breeding has yet to provide enough supply to make today’s market more bearish. Demand for U.S. beef is unlikely to slow and remains relatively robust, even as consumers watch their spending. Meanwhile, global and domestic demand for protein, and specifically beef, has strengthened in recent years. U.S. beef exports grew 21% from 2015 to 2023. Tighter beef availability has limited exports so far this year (down 2% year-over-year), but growth remains the trend. Domestic demand has expanded as well, with domestic disappearance of beef 0.6% higher year-over-year in 2023, and per capita beef consumption has been rising as well.

With inflation cooling, consumers are likely to continue adding beef to their grocery carts. Until we see evidence that consumers are willing to switch from burgers to chicken or other proteins consistently, it appears beef prices are likely to remain strong and continue to limit the ability to grow the U.S. dairy herd in a meaningful way.

This column originally appeared in Hoard’s Dairyman Intel on Oct. 17, 2024.

Three-a-Day Dairy Important to a Healthy Life, National Medical Association Leader Says

Posted on by Rachel Ravencraft

With the dietary guidelines for American Scientific Advisory Committee reviewing the science for the upcoming 2025 guidelines, better nutrition for diverse American communities is getting a lot of attention. Dr. Priscilla Mpasi, a Philadelphia physician and board member of the National Medical Association, said dairy’s essential to support in the dietary recommendations the guidelines make, given its importance to nutrition in families with diverse backgrounds.

“The science is very clear about the health benefits, from birth to our senior population,” said Mpasi, a primary care pediatrician, in a Dairy Defined Podcast released today. “The recommendations have been three servings of dairy a day, and we’re hoping it stays at three servings of dairy a day.”

Mpasi also addresses misperceptions regarding lactose intolerance, misinformation on dairy among consumers, and the contrasts between dairy and plant-based beverages.

You can find and subscribe to the podcast on Apple Podcasts, Spotify, Amazon Music, or wherever you get your podcasts, under the podcast name “Dairy Defined.”

Media outlets may use clips from the podcast on the condition of attribution to the National Milk Producers Federation.

New sustainability tool means better insights

Posted on by Alan Bjerga

By Nicole Ayache, Chief Sustainability Officer, NMPF and FARM

The National Dairy Farmers Assuring Responsible Management (FARM) Program will launch Environmental Stewardship (ES) Version 3 in the next few weeks, helping producers understand on-farm greenhouse gas emissions and reduction opportunities like never before.

FARM ES Version 3 uses a new scientific model, the Ruminant Farm Systems model. RuFaS offers the option to run scenarios to inform on-farm decisions on topics ranging from ration formulation to manure management strategies, cropping practices, and more. This update is timely, coming at a moment when U.S. dairy farmers are being asked to build on their legacy of natural resource stewardship and ramp up their greenhouse gas (GHG) reduction activities.

An example of the Version 3 program

The demand for GHG reductions is real and growing. Sixteen of the U.S.’s top 20 dairy processors have set a climate reduction target with the Science Based Targets initiative the leading global framework for companies to set voluntary GHG reduction goals, or have committed to setting one in the near future. Ten processors have targets that include Scope 3 emissions, which means they are looking for farm-level reductions. The voluntary carbon marketplace also shows this increasing demand: According to an analysis by McKinsey and Company, demand for voluntary carbon credits could rise by a factor of 15 by 2030.

FARM ES isn’t a carbon marketplace. But the upgraded platform gives farmers the insights and tools to assess the opportunities offered by carbon markets, supply chain inset projects, cost-share or incentive programs, and more. Farmers need access to robust, scientifically sound information so they can weigh options for reducing emission in ways that make sense for their business. Opportunities to reduce emissions can also mean reduced costs and increased productivity. The scenario analysis of the upgraded FARM ES evaluation tool includes an estimate of milk productivity changes and will grow to include financial analyses as these become available through RuFaS.

Just as with FARM ES Version 2, the upgraded platform continues to emphasize accuracy across different farm sizes, geographies, and styles. The data inputs are designed to be farmer friendly, and the core data required is similar to Version 2. Farmers also have the flexibility, but are not required, to input optional data such as reproductive programs, culling information, and farm cropping practices for more tailored results on emissions and carbon sequestration estimates.

A key focus for the rest of the year will be to collect farmer, FARM evaluator, and other stakeholder feedback, with plans to further refine the tool in 2025.

Farmers can reach out to their FARM Program evaluator to gain access to a FARM ES Version 3 platform once it launches. If the farm’s cooperative or processor does not yet participate in FARM ES, or if a farm would like to conduct a self-evaluation, reach out to dairyfarm@nmpf.org for guidance.

To learn more about the development of Version 3 and current FARM Environmental Stewardship efforts, please visit our website.

This column originally appeared in Hoard’s Dairyman Intel on Oct. 14, 2024.

Prairie Farms Co-op Takes Top Communications Honors in NMPF Contest

Posted on by Theresa Sweeney

Michigan Milk Producers Association’s Chapin Wins Farmer Communicator of the Year

Prairie Farms Dairy, Inc., took top honors in the National Milk Producers Federation’s annual cooperative communications contest, winning five categories and the competition’s “Best in Show: Writing” award. A farmer-owner of Michigan Milk Producers Association (MMPA), Doug Chapin, received NMPF’s Farmer Communicator of the Year award.

Edwardsville, IL-based Prairie Farms also took one second-place finish and two third-place finishes in the competition, which recognizes the top communications efforts among NMPF’s member cooperatives. The Best of Show: Writing award was given for Prairie Farms’s  article, “R-Homestead Holsteins – 150 Years of Family Tradition.”

“This was a good feature showing the history of a small Illinois dairy with the father, Dave, having a long history of activism in Illinois boards and commissions,” the competition review wrote. “The story also touches on challenges such as why an 80-head dairy hasn’t expanded like others. It also highlights Dave’s interest in genetics with his herd as well. It’s a good, rounded, thorough story of a single family farm.”

Chapin was recognized for his leadership in communicating farmer and co-op perspectives on challenging issues that were of top priority to dairy farmers and the entire industry throughout 2024, including dairy’s response to the discovery of the H5N1 influenza virus in dairy cattle and efforts to modernize the Federal Milk Marketing Order system.

At a time when simply speaking out on H5N1 invited additional scrutiny, Chapin ably represented dairy farmers and the cooperatives they owned by addressing consumer and industry concerns during moments of great uncertainty early in the H5N1 outbreak.

“During the H5N1 crisis in Michigan, Doug was instrumental in advocating to legislators for a science-based regulatory approach , representing dairy interests to the media, and maintaining critical industry relations within the agriculture community,” Michigan Milk Producers Association said in its nomination letter. “His efforts ensured that the dairy community’s perspective was front and center, demonstrating his unwavering commitment to the industry and the health and safety of workers and cattle.”

Chapin also “played a crucial role in the Federal Milk Marketing Order reform by testifying on behalf of NMPF and the Michigan Milk Producers Association,” MMPA continued. “He advocated for the higher of Class 3 or 4 proposal for the Class I skim milk price mover, supporting his testimony with data and his farm’s experience during the pandemic. His participation ensured that his peers’ voices were heard in the reform process.”

Chapin is the chairman of the board for MMPA and a member of NMPF’s executive committee. He farms near Remus, MI. In an NMPF Farmer Focus article to be published later this month, he said that in the early days of H5N1, dealing with uncertainty about the virus and the necessity of a response by state and federal officials. “Our objective was to make sure that the response made sense and was manageable by our dairy producers, to make sure that they could operate within the guidance that Michigan was putting out and work with the USDA,” he said.

“It’s important to remember that there is still a lot we don’t know about the virus, and early on, there was even less,” he continued. “So we wanted to make sure we were using real facts and the best science we had to make sure we were making good decisions.”

The “Best of Show” award is selected from the first-place entries in the contest’s main areas: publication, writing, graphics and special projects. In addition to Prairie Farms’s recognition in the writing category, Upstate Niagara Cooperative won publications for its annual report; Dairy Farmers of America won graphics for its photo, “Dairy Fountain at Sunset,” and Land O’Lakes won the special projects category with its video series, “Rural is Incredible.”

Winners were announced at a meeting of NMPF member cooperative communicators yesterday. All the winners will also be recognized at NMPF’s annual meeting in Phoenix on Oct. 21-23. A full list of the winners of the NMPF communications contest, which received 95 entries from 11 member cooperatives, can be found here.

NMPF’s Galen Previews Upcoming Joint Annual Meeting in Phoenix

Posted on by Chris Galen

NMPF’s Senior Vice President Chris Galen provides Dairy Radio Now listeners the highlights of National Milk’s 2024 annual meeting in Phoenix, which runs Oct. 20-23. The annual conference, held jointly with the dairy checkoff, will feature keynote presentations on new revenue opportunities for farmers, an assessment of the upcoming November elections, a psychographic profile of the farmer of the future, and a presentation from the CEO of Domino’s Pizza.  The meeting also brings together the Young Cooperator program representatives from NMPF’s member co-ops.

Dairy Votes Crucial in 2024 Elections

Posted on by Rachel Ravencraft

With the 2024 presidential campaign in its final stretch and the list of competitive states tightening, this much remains clear: Whichever road leads to the White House, it probably has a lot of dairy farms along the path.  

Rural and farm voters are getting plenty of attention from both campaigns this time around. But through accident or historical design, the farmers who may have the most say in this year’s presidential election may be the ones milking cows.

That’s because the most hotly contested states significantly overlap with top milk-producing regions, according to a comparison of top dairy states with the states that had the closest electoral margins in 2020. Dairy is a big part of agriculture in the “blue wall” states of Wisconsin, Pennsylvania and Michigan. Minnesota is also part of the mix, and even Texas – which has become a major dairy producer in recent years – was among the 10 closest states electorally.  

And that’s just looking at dairy farm numbers in those states; Georgia and Arizona both have significant dairy processing capacity, which means plenty of dairy-related jobs, extending milk’s influence beyond cliched photo opportunities in front of a barn. 

With so much attention focused on the states where many of them live, what should dairy farmers and their industry allies do? It all comes down to civics and citizenship. People vote their conscience – but from a dairy perspective, here are a few thoughts that might be helpful when considering who to vote for, at all levels of federal races. 

  • International trade is an important part of dairy, and it will only be more so in the future. 
  • Americans deserve healthy diets, and dairy is critical to any good-faith iteration of the next Dietary Guidelines for Americans. 
  • And finally, it sure would be nice to have a farm bill. 

Voting in 2024 is as vital to dairy farmers as dairy is to a nutritious diet. To be better informed on dairy positions on important issues, visit the National Milk Producers Federation’s Policy Priorities pulldown on its home page, nmpf.org. NMPF also has a call-to-action page for people who wish to lend their voices to support dairy farmers and the broader industry on the critical issues of the moment. And subscribe to our publications (including this one) here.  

Engagement is crucial, and dairy voices are especially important this year. Everyone has a part to play in making them heard. In the United States, the ballot remains the most effective expression of all. From now through Nov. 5: Choose wisely.