President Trump Signs Farm Bill That Includes Positive Dairy Policy Reforms

With NMPF Chairman Randy Mooney in attendance, President Donald Trump signed into law a new farm bill just before Christmas, shortly after Congress passed the legislation. The final bipartisan bill – officially called the Agriculture Improvement Act of 2018 (H.R. 2) – made significant improvements to the dairy safety net and risk-management options, reflecting more than two years of effort by NMPF and dairy champions to revamp and revitalize federal dairy programs. Changes include:

  • Affordable higher coverage levels in the Dairy Margin Coverage program (renamed from the Margin Protection Program) that will permit all dairy producers to insure margins up to $9.50 on their Tier 1 (first five million pounds) production history;
  • Affordable $5.00 margin coverage, reduced in cost by 88 percent. That will make DMC enrollment more attractive to larger producers and create a baseline for meaningful catastrophic coverage at a reasonable cost, without distorting the market signals needed to balance supply with demand.
  • Greater flexibility to allow producers of all sizes to access Tier 1 premium rates without having to cover additional milk; and
  • Greater flexibility to participate in a suite of USDA programs, including the DMC, the Livestock Gross Margin insurance program and the Dairy Revenue Protection program. That helps producers of all sizes choose programs that best fit their needs, allowing them to effectively manage their risk and plan their business for the next five years.

The work done in the 2018 farm bill builds upon the improvements enacted in the Bipartisan Budget Act passed earlier last year, including dairy safety net reforms spearheaded by Sens. Patrick Leahy (D-VT) and Debbie Stabenow (D-MI), as well as risk management improvements advanced by Reps. Mike Conaway (R-TX) and Collin Peterson (D-MN).

NMPF commended the bipartisan leaders of the House and Senate Agriculture Committees – Reps. Conaway and Peterson, and Sens. Stabenow and Pat Roberts (R-KS) – for their diligent, steadfast work to get the farm bill across the finish line. Senior House committee members Reps. Glenn Thompson (R-PA) and Jim Costa (D-CA) also provided important support.

Since the law’s passage, the USDA has pledged to quickly implement the new dairy rules, bringing much-needed additional aid to producers, pending the resolution of the current government shutdown.  NMPF looks forward to working with Agriculture Secretary Sonny Perdue and his team to ensure its prompt, effective implementation to the benefit of all dairy producers.

Dairy Wins Major Gains in the Farm Bill

Last year was extremely challenging for dairy. But as the year drew to a close, it ended on a very positive note. On Dec. 20, with NMPF Chairman Randy Mooney in attendance, President Donald Trump signed the new farm bill into law – with dairy the biggest winner. This key moment represented nearly two years of critically important work by congressional agriculture leaders and dairy champions.

The bill enhances protections against low prices and offers greater flexibility for producers of all size operations to choose the programs that are best for their needs. It caps several years of consistent effort by NMPF and dairy farmers throughout the country to impress upon Congress the unique challenges our sector has faced in recent years and the need to tailor legislation to meet those challenges.

It shows just how powerful a voice dairy can have in Washington – and not just because the president introduced our chairman by name when he welcomed farm leaders to the White House for the bill-signing. It shows how, when we unite toward common goals that improve the health of our industry, and when we work with the optimism that’s just as necessary in crafting policy in Washington as it is in sustaining a dairy operation, we can help build an environment in which dairy farmers’ needs for an economic safety net to offset milk price volatility can be met.

We’ve provided extensive information about this bill since Congress passed it on Dec. 12, and we will provide even more once the federal government re-opens and USDA can begin implementing the improved program in the weeks to come. Our website already features numerous resources where members can learn more about the bill and begin planning for its implementation next year.  At the center of the law’s dairy provisions is an improved safety net, now renamed the Dairy Margin Coverage program, that gives both smaller and larger producers new incentives to enroll and greater protection when they participate. These changes benefit all producers and build upon the gains we made last February in the Bipartisan Budget Act. Some highlights of the new safety net:

  • Affordable higher coverage levels that will permit all dairy producers to insure margins above $8.00 on their Tier 1 (first five million pounds) production history, the previous limit under the Margin Protection Program. By going up to $9.50/cwt., producers will have greater opportunities for assistance during difficult price environments like the one we are currently living through.
  • Affordable $5.00 coverage that lowers premium costs by roughly 88 percent. This aids larger producers, creating a baseline for meaningful catastrophic coverage at a reasonable cost without distorting the market signals needed to balance supply with demand.
  • Greater flexibility to participate in a suite of USDA programs, including the DMC, the Livestock Gross Margin insurance program and the Dairy Revenue Protection program. That helps producers of all sizes choose programs that best fit their needs, allowing them to effectively manage their risk and plan their business for the next five years.

We owe a sincere debt of gratitude to several members of Congress who fought to enact these reforms both in the Farm Bill and in the Bipartisan Budget Act. In the Senate, Agriculture Committee Ranking Member Debbie Stabenow (D-MI) and Appropriations Committee Vice Chairman Patrick Leahy (D-VT) championed efforts to improve the dairy safety net, with support from Agriculture Committee Chairman Pat Roberts (R-KS) as well. In the House, newly-minted Agriculture Committee Chairman Collin Peterson (D-MN) and then Chairman (now Ranking Member) Mike Conaway (R-TX) both spearheaded dairy policy reforms, with important support from senior committee members Reps. Glenn Thompson (R-PA) and Jim Costa (D-CA).

The farm bill also strengthens the industry as a whole – and that came through industry-wide teamwork among NMPF and the International Dairy Foods Association which, beginning in 2017 preparations for the bill, forged an unprecedented industry consensus.

The farm bill includes an agreement reached between the two organizations on risk management that will help producers, cooperatives and processors to better hedge price risk. The bill will change the Class I fluid milk price mover from the previous higher of Class III or Class IV to the average of Class III and Class IV, plus a $0.74 adjustor. The so-called “Class I mover” provision aids the entire supply chain, showing how all can benefit when we work in unity to accomplish a common effort.

That momentum will continue into the new year.

Now that Congress has passed the law and the president has signed it, the U.S. Department of Agriculture is committed to making sure dairy is at the front of the line when it writes the rules and implements the law. Even before the farm bill was signed, Agriculture Secretary Sonny Perdue said the department is “looking forward to prioritizing” dairy-program implementation. NMPF will work closely with the USDA, answering questions, providing analysis and advocating for our members to make sure the law’s good intentions become a fruitful reality.

This is not to say the new law alone turned 2018 into a positive year. It didn’t. Congress’s attention arose from the unfortunate reality that dairy farmers needed help – and that need doesn’t vanish with a new law. A new farm bill doesn’t bring back strong prices. It doesn’t restore access to foreign markets that farmers need to flourish. It doesn’t solve supply gluts, and it alone won’t keep every dairy afloat. These are hard realities – and they don’t go away with the stroke of a pen.

But an improved safety net can relieve some of the financial pressure that’s kept hard-working families awake at night. It can give producers renewed reason for hope. And it’s a motivation to keep working – we didn’t give up simply because the farm bill looked too difficult to pass or the budget environment was too difficult to navigate. That was true at the beginning of 2018 – but by year’s end, we got a bill in which even observers outside our sector acknowledged that dairy was a big winner.

We at NMPF don’t have a crystal ball for 2019. We know we have fights ahead – on trade, on immigration, and on labeling, just to name a few. And we know that 2018 wasn’t easy. We do know that, heading into this year, dairy’s safety net is stronger than it was a year ago – and, more importantly, so is our unity. That first fact will provide comfort in the new year. The second will help bring us continued success.

    

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NMPF Thanks President Trump for Signing Farm Bill

ARLINGTON, Va. – The National Milk Producers Federation (NMPF) thanked President Donald Trump for signing a farm bill that enacts necessary reforms for dairy farmers. The organization looks forward to working with the U.S. Department of Agriculture (USDA) to quickly implement several new programs.

With NMPF Chairman Randy Mooney in attendance, Trump praised the hard work of American farmers and noted Congress’s efforts to assist them. Dairy has been noted as a big winner in the bill, with new programs that assist dairy producers facing low prices. Important policy reforms include:

  • Much more affordable and higher coverage levels in the new Dairy Margin Coverage program (DMC) (renamed from the Margin Protection Program) that will allow all dairy producers to insure margins up to $9.50/cwt. on their Tier I (first 5 million pounds) production history
  • Lower-cost $5.00 margin coverage, allowing farm operations wishing to cover more than 5 million pounds of production to have a higher level of affordable catastrophic protection
  • Expanded access to additional risk management tools, which allows producers to participate in the DMC along with options including the Livestock Gross Margin insurance program and the new Dairy Revenue Protection program.

“By signing the farm bill, the president has acknowledged the problems dairy producers face and has put his stamp on improving their circumstances,” said Mooney, who operates Mooney Dairy in Rogersville, Missouri, with his wife Jan. “That only increases momentum for USDA to put these programs in effect quickly, assisting producers in a time of need.”

USDA earlier this week highlighted implementation of the dairy programs as an early priority. Once USDA draws up rules to administer its initiatives, producers will sign up for their coverage retroactive to Jan. 1.

NMPF again thanked Reps. K. Michael Conaway (R-TX) and Collin Peterson (D-MN), the chairman and ranking member of the House Agriculture Committee, as well as Sens. Pat Roberts (R-KS) and Debbie Stabenow (D-MI), the chairman and ranking member of the Senate Agriculture Committee, for their work on reaching a final agreement.

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The National Milk Producers Federation (NMPF), based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce the majority of U.S. milk, making NMPF the voice of dairy producers on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

NMPF Statement on the Bioengineered Food Disclosure Rule

ARLINGTON, Va. – In response to the U.S. Department of Agriculture’s (USDA) announcement today of its National Bioengineered Food Disclosure Standard, NMPF President and CEO Jim Mulhern offered the following comments:

“NMPF is pleased with the bioengineered food disclosure rule’s re-assertion that milk from animals that consume bioengineered feed shouldn’t be subject to mandatory GMO labeling. NMPF told Congress that any regulation requiring the labeling of bioengineered products must be science-based and acknowledge that feeding farm animals grains developed through biotechnology has no effect on the animals or products derived from them. This rule codifies our position.

“It’s important to remember that bioengineered food disclosure rules should be founded in science, and are a measure to regulate food marketing, not food safety. Also, the rule doesn’t fix every problem regarding the labeling of bioengineered products in the marketplace. Misleading absence claims may persist even under this rule, and we urge USDA and the U.S. Food and Drug Administration (FDA) to focus their energy on examining voluntary disclosures and their potential to be false and misleading.”

NMPF is a member of the Coalition for Safe Affordable Food, a group of farm and food organizations that worked together to help pass the labeling law in 2016.

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The National Milk Producers Federation (NMPF), based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce the majority of U.S. milk, making NMPF the voice of dairy producers on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

NMPF Releases Fake Milk “Naughty or Nice List” for Holidays

ARLINGTON, Va. – With the holidays fast approaching, the National Milk Producers Federation (NMPF) today released its own version of Santa’s “Naughty or Nice” list focused on good and bad actors in the labeling of fake dairy products.

On the “naughty” side: beverage brands that use the word “milk” to sell nutritionally inferior non-dairy products. These include Almond Breeze, Oatly, Great Value (Walmart), Simply Balanced (Target), Muscle Milk, and So Delicious.

And on the “nice” side: brands that lead with truthful food labeling by avoiding the term “milk” and offering an accurate description of what their products are – non-dairy beverages. Trader Joe’s, Quaker, Pacific Foods, and Kirkland (Costco) are on this list.

NMPF’s “Naughty or Nice” list comes as the U.S. Food and Drug Administration (FDA) continues to solicit public comment through Jan. 28 on the proper names for plant-based beverages.

The U.S. Food and Drug Administration (FDA) already has a clear definition of what constitutes milk: “Food products made exclusively or principally from the lacteal secretion obtained from one or more healthy milk-producing animals.” Plant-based beverages don’t meet that standard. NMPF is calling on the FDA to enforce its own rules and end deceptive labeling of fake dairy products.

“Certain brands already use truthful and transparent labels and don’t improperly borrow dairy terms to describe their products. Unfortunately, far too many brands market their nutritionally inferior products under the health halo of real dairy milk,” said Jim Mulhern, president and CEO of NMPF. “It’s time for the FDA to enforce milk-labeling laws already on the books.”

Consumer data illustrate just how many consumers are being misled by imitation dairy products. A survey by IPSOS, commissioned by Dairy Management Inc., found that:

  • 73 percent of consumers believed that almond-based drinks had as much or more protein per serving than milk. Milk has eight times as much protein;
  • 53 percent said they believed that plant-based food manufacturers labeled their products as milk because their nutritional value is similar. That’s not the case; and
  • Misinformation was more prevalent among those who only bought plant-based drinks. Of those buyers, 68 percent strongly or somewhat argued those drinks have the same nutritional content as dairy milk. In reality, those beverages do not.

Check out the full “Naughty or Nice” list below:

Naughty

Almond Breeze is the best-selling almond “milk” brand and prominently features the descriptor “milk” on its package, even though it doesn’t contain any milk from a cow.

The Swedish oat beverage Oatly has two different packages: one without the term “milk” to satisfy labeling regulations abroad and another that uses misleading labeling in the United States.

Walmart is the largest U.S. grocer, exposing a tremendous number of Americans to misleading labeling every day.

Target’s Simply Balanced brand also reaches a large number of consumers with its misleading labels.

Muscle Milk has one of the most recognizable labels of all the dairy imitators. It has a laundry list of ingredients, but not an ounce of milk in it.

Coconuts can’t lactate. So Delicious shouldn’t peddle their product as “milk.”

Nice

Trader Joe’s sells a variety of plant-based beverages with accurate labels, a stark contrast to Almond Breeze.

Quaker Oats calls its oat product a beverage.

Pacific is a good example of a smaller company that uses truthful and transparent labeling.

Costco, through their Kirkland brand, does not use the term “milk” to describe its almond beverage.

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The National Milk Producers Federation (NMPF), based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce the majority of U.S. milk, making NMPF the voice of dairy producers on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

NMPF Welcomes USDA Assistance, Looks Forward to Farm Bill Implementation

In response to USDA’s announcement of a second round of trade mitigation payments to U.S. farmers, NMPF President and CEO Jim Mulhern offered the following comments:

“The tariff-mitigation payment for dairy farmers in this second round of payments is less than we had hoped for, but it will provide some assistance during difficult times.

“The tit-for-tat tariffs that prompted these mitigation payments continue to inflict damage across the farm economy. We urge the Administration to resolve tensions with key trading partners, including China and Mexico, as the best way to assist farmers going forward.

“We are thankful that Congress last week emphatically supported milk producers and all of U.S. agriculture by passing a farm bill that will provide timely, critical assistance. We look forward to the president signing the bill and appreciate that USDA has highlighted implementation of the new dairy program as an early priority.”

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The National Milk Producers Federation (NMPF), based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce the majority of U.S. milk, making NMPF the voice of dairy producers on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

Farm Bill Released; Final Vote May Be This Week

Congress released on Monday a compromise farm bill for consideration by both chambers this week, potentially concluding a months-long process with progress for dairy producers. 

The National Milk Producers Federation thanked members of Congress, especially the bipartisan leaders of the House and Senate Agriculture Committees, for crafting a new farm bill that includes much-needed reforms to help American dairy farmers.

“Members of Congress on both sides of the aisle should be commended for reaching a deal that will benefit U.S. agriculture and ensure safe, affordable food for Americans and the world,” said Jim Mulhern, president and CEO of NMPF. “A new law is especially important for dairy, a sector struggling with low prices and disrupted exports. We thank lawmakers for addressing our concerns with measures that will help producers in need.”

NMPF called on the full Congress to pass the bill quickly while thanking its four principal negotiators:  Senator Agriculture Committee Chairman Pat Roberts (R-KS) and Ranking Member Debbie Stabenow (D-MI) as well as House Agriculture Committee Chairman Mike Conaway (R-TX) and Ranking Member Collin Peterson (D-MN).  While the bill includes a vast array of farm policy changes, improvements benefiting dairy include:

  • Higher coverage levels in a renamed Margin Protection Program (MPP) that address deficiencies in the current program’s feed-cost formula
  • Greater flexibility to allow producers of all sizes to access Tier 1 premium rates
  • Expanded access to additional risk management tools, allowing producers to participate in both MPP and the Livestock Gross Margin insurance program
  • Continued support for land and water conservation programs that assist dairy producers
  • Full funding for Farm Bill trade promotion programs, a crucial concern in an era of markets lost to tariffs
  • Nutrition provisions intended to enhance consumption of fluid milk

The law’s provisions build on improvements enacted in the Bipartisan Budget Act earlier this year, including dairy safety net reforms spearheaded by Senators Stabenow and Patrick Leahy (D-VT), as well as risk management provisions championed by Reps. Conaway and Peterson.

NMPF Strongly Supports EPA Efforts to Exempt Manure Air Emission Reporting Under EPCRA

ARLINGTON, VA – The National Milk Producers Federation (NMPF) filed comments today in support of the U.S. Environmental Protection Agency’s (EPA) Nov. 14 proposal to exempt manure air emissions reporting from the Emergency Planning and Community Right-To-Know Act (ECPRA).

In October 2017, EPA concluded that air emissions from manure did not need to be reported under EPCRA while signaling it would take a substantive approach through rulemaking to explain its thinking on the issue. EPA’s assessment largely was based on the fact that the air emissions were a result of “routine agricultural operations” exempt from EPCRA reporting.

EPA’s current actions with EPCRA are consistent with Congress’ recent action to exempt manure emissions reporting requirements under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).

In today’s comments, NMPF expressed support for that approach and noted that the legislative history of EPCRA showed that Congress did not intend for continuous air emissions reports to be filed under EPCRA if they were not required under CERCLA. In further support of EPA’s action, NMPF has noted that the emergency response community has no use for these reports and that they impede their emergency response function.

“The record is clear,” NMPF said in its comments. “Congress, the U.S. Coast Guard, and Emergency Responders around the country all oppose air emissions from manure reporting. We appreciate the opportunity to share our views on this important topic and commend the agency for its diligence.”

NMPF also concurred with EPA’s proposed new definitions of “Animal Waste” and “Farms.” NMPF looks forward to EPA finalizing this rulemaking as proposed.

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The National Milk Producers Federation (NMPF), based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce the majority of U.S. milk, making NMPF the voice of dairy producers on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

NMPF Urges Members to Tell FDA to Enforce Dairy Labeling Rules

Following the announcement that the U.S. Food and Drug Administration is extending the public comment period on the fake-milk labeling issue, NMPF is urging its members to provide feedback to the agency before the Jan. 28 deadline.

Since NMPF released its first four-page document of key messages and data points at its Annual Meeting in October, it has expanded its toolkit of resources, including an instructional video, colorful graphics, a dedicated webpage and a social media marketing campaign – all intended to demonstrate  why the FDA needs to enforce its existing labeling standards. NMPF is asking not just its members, but also consumers, family members and even pediatricians to explain how misbranded dairy imitators mislead consumers and harm public health.

“We’re really revving the engine on this issue,” said NMPF President and CEO Jim Mulhern. “With less than two months to go before the commenting deadline, we intend to drum up support from our engaged membership and use it to highlight the public health issues at stake.”

Informational materials now available on the NMPF website include:

  • A four-page document that includes instructions for submitting comments and key points
  • An instructional video with screen grabs illustrating the step-by-step process of how to comment on the FDA docket
  • A library of graphics to share in newsletters or on social media

Beverages made of water, emulsifiers and plant ingredients have long used dairy terms to falsely associate themselves with the positive traits of milk-based foods, including milk’s nine essential nutrients. While FDA standards clearly specify that milk is the product of an animal, enforcement of those rules has been neglected for decades. FDA finally took up the standards-of-identity issue earlier this year, holding a hearing in July before putting out an initial request for comments with a deadline of Nov. 27. NMPF successfully requested that the deadline be pushed to the end of January, after which the FDA may consider a new rule governing dairy labeling.

Current labeling practices create false impressions of nutritional and quality equivalence that prompt consumers to make decisions they might not otherwise make with proper labeling.

“U.S. consumers shouldn’t receive false signals about products,” said Mulhern. “This situation requires FDA’s intervention, for the benefit of consumers and transparency in the marketplace. Until then, the dairy producer community has to lead the charge in providing clear, compelling arguments for why action is needed.

USMCA Trade Pact Signed, but Work Remains

In an important step toward ending trade disputes that have harmed U.S. dairy exports, President Donald Trump joined Canadian Prime Minister Justin Trudeau and Mexican President Enrique Peña Nieto in signing the U.S. Mexico-Canada Agreement on Nov. 30 in Buenos Aires, Argentina

Jim Mulhern, president and CEO of NMPF, praised the leaders for reaching a deal that preserved the agreement’s duty-free terms for U.S.-Mexico dairy trade; included notable reforms to Canada’s dairy pricing system; created additional dairy-market access; and ushered in beneficial new rules in multiple key agricultural trade areas. Mulhern also noted that work was not yet finished, as Mexican retaliatory tariffs on U.S. cheeses levied in response to U.S. tariffs on Mexican steel still hang over the market, creating a drag on farmers’ prices.

“We appreciate the Trump Administration for continually raising our issues of concern and fighting for a better agreement with Canada,” he said. “We encourage the administration to remo

ve other tariffs that are hampering North American trade, including the steel and aluminum tariffs still imposed on Mexico, and to continue making progress in striking new free trade agreements and resolving ongoing trade conflicts.”

NMPF and the U.S. Dairy Export Council will shortly submit comments to the U.S. International Trade Commission on the USMCA to help the agency analyze the agreement and ensure that dairy producers continue to have a voice in the process. A key focus remains driving home the need to implement the agreement in a manner that keeps with both the letter and the spirit of the deal. ITC will issue its report on the economic merits of the USMCA in early 2019, as part of the Congressionally-mandated Trade Promotion Authority process.

In addition to the headline issues, NMPF worked hard to guard American dairy producers’ interests in the agreement, such as working with negotiators to safeguard existing U.S. cheese sales to Mexico, countering European Union efforts to block the sale of U.S. products.

Looking ahead, NMPF is gearing up for the congressional stage of USMCA approval, working with the Office of the Trade Representative and Agriculture Department to spotlight key implementation areas that need attention and urging the administration to drop its steel and aluminum tariffs in the wake of the USMCA signing.

NMPF Thanks Congress for Sending Pro-Dairy Farm Bill to White House, Urges President to Sign

ARLINGTON, Va. – The National Milk Producers Federation (NMPF) applauded the U.S. House of Representatives for completing congressional approval of a new farm bill and sending to the White House a law that will provide important economic assistance to dairy producers in times of need. NMPF urged President Donald Trump to immediately sign the bill.

“The farm bill passed by the full Congress represents a truly bipartisan spirit and offers genuine hope for agriculture,” said Jim Mulhern, president and CEO of NMPF. “The dairy provisions adopted by Congress will bring critically important assistance to the nation’s dairy farmers. The sooner the president signs the bill, the sooner that the Agriculture Department can implement these important policy improvements.”

The farm bill’s adoption by the House follows yesterday’s Senate vote of approval and reflects months of work in both chambers.

Among House members, Reps. K. Michael Conaway (R-TX) and Collin Peterson (D-MN), the chairman and ranking member of the House Agriculture Committee, worked tirelessly to reach a final agreement. In addition, NMPF thanked several members of the conference committee who advocated strongly for dairy, including Vice Chairman Glenn ‘GT’ Thompson (R-PA) and Reps. Jim Costa (D-CA), Roger Marshall (R-KS), Ann Kuster (D-NH), Sean Duffy (R-WI), Tom O’Halleran (D-AZ), Bob Gibbs (R-OH), Paul Tonko (D-NY), Jodey Arrington (R-TX), and Tim Walz (D-MN). NMPF also appreciates the advocacy of Reps. David Valadao (R-CA), Peter Welch (D-VT), Elise Stefanik (R-NY), Joe Courtney (D-CT), John Faso (R-NY), Dan Newhouse (R-WA), Tom Emmer (R-MN), Mike Simpson (R-ID), and Mike Bost (R-IL) on specific provisions included in the bill.

The farm bill features several important policy reforms for dairy, including:

  • Affordable higher coverage levels in the Dairy Margin Coverage program (DMC) (renamed from the Margin Protection Program) will permit all dairy producers to insure margins above $8.00 on their Tier I (first five million pounds) production history.
  • The bill will reduce the cost of $5.00 margin coverage by roughly 88 percent. This aids larger producers and is critically important in times of catastrophically low milk prices.
  • Greater flexibility to allow producers of all sizes to access Tier I premium rates.
  • Expanded access to additional risk management tools, allowing producers to participate in both the DMC and the Livestock Gross Margin insurance program.
  • An option that will allow producers to receive a 25-percent discount on their premiums if they lock in their coverage level for the entirety of the bill.

Collaborative work across the dairy sector was instrumental in securing this year’s pro-dairy bill, Mulhern said. NMPF and the International Dairy Foods Association (IDFA) forged an unprecedented industry consensus during discussions of the bill dating to last year. The final bill includes an agreement reached between the two organizations on risk management that will help producers, cooperatives and processors to better hedge price risk.

“IDFA worked closely with colleagues at NMPF to unite behind shared solutions for dairy,” said Michael Dykes, DVM, president and CEO of IDFA. “Members of Congress have called our collaborative efforts historic, refreshing and, best of all, exceedingly helpful to their farm bill efforts. The dairy provisions included in the bill represent the positive outcomes we can gain through sustained industry collaboration.”

“Dairy works best when it works together,” Mulhern said. “Congress noticed. Hard work and cooperation among NMPF, IDFA, member co-ops, state associations and the entire dairy community helped craft a bill that will benefit us all.”

For more details on the new law’s benefits to dairy, see this letter sent to Congress by NMPF urging the farm bill’s adoption.

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The National Milk Producers Federation (NMPF), based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce the majority of U.S. milk, making NMPF the voice of dairy producers on Capitol Hill and with government agencies. For more, visit www.nmpf.org.