As America’s dairy farmers endure the lowest milk prices since the Great Recession of 2009, the National Milk Producers Federation today asked the U.S. Department of Agriculture to provide a measure of relief by purchasing at least $100 million worth of cheese products for donation to the needy

As America’s dairy farmers endure the lowest milk prices since the Great Recession of 2009, the National Milk Producers Federation today asked the U.S. Department of Agriculture to provide a measure of relief by purchasing at least $100 million worth of cheese products for donation to the needy – a measure that would help both farmers, and food insecure Americans who patronize food banks.

In a letter sent Friday to Agriculture Secretary Tom Vilsack, National Milk urged the department to use all of its available authorities to purchase $100 to $150 million of cheese. NMPF asked USDA to utilize its Section 32 program, as well as additional authorities through the Farm Service Agency, the Food and Nutrition Service, and the Commodity Credit Corporation.

“Dairy producers here in the United States need assistance to help endure this 18-month depression in milk prices,” said Jim Mulhern, NMPF President and CEO. “This type of assistance would both help economically-strapped farmers, and also help those without ready access to nutritious dairy products.”

A cheese buying program of up to $150 million would allow for the distribution of as much as 90 million pounds of cheese to nonprofit food banks. Donating this quantity of cheese would remove the equivalent of almost 900 million pounds of milk from the domestic commercial market and strengthen farm-level prices by about $0.16 per hundredweight over the course of a year, increasing the incomes of all U.S. dairy farmers by approximately $380 million.

Global dairy demand has sagged in the past two years, due primarily to a reduction in purchases by China and Russia. Meanwhile, a global rise in milk production – particularly in Europe, where production quotas were removed last year – has led to a worldwide imbalance between supply and demand, pushing prices down for farmers around the world. U.S. dairy exports have slumped, leading to a large domestic buildup of American-type cheese (between 2014 and 2016, U.S. cheese exports dropped by almost 20 percent).

The current national price for farmers’ milk is $14.50 per hundredweight, or $1.25 per gallon, the lowest price since October 2009, NMPF’s letter said. The cost of purchased feed has risen recently, producing a Margin Protection Program (MPP) margin of $5.76 per hundredweight for the May-June period, the lowest bimonthly margin since MPP began.

Also in the letter, NMPF once again reiterated its desire to work with USDA to make necessary improvements to MPP, the dairy safety net program created out of the 2014 farm bill. Limitations of the program approved by Congress have caused few producers to sign up for coverage at levels that will provide sufficient support this year, and NMPF hopes to work with Congress and USDA in the future to alleviate the issue.

 

The Farmers Assuring Responsible Management (FARM) Program, administered by the National Milk Producers Federation (NMPF), is assuming management of the Farm Smart Program, previously managed by Dairy Management, Inc.

DENVER, COLO. – Concluding a successful two-day summit here, leaders of U.S. and Mexican dairy industry organizations yesterday pledged to work together to boost trade between the two countries, address mutual challenges and increase dairy consumption while also promoting milk production on both sides of the border.

The dairy leaders signed a memorandum creating a US-Mexico Dairy Alliance that will meet annually to exchange information, review industry trends, and identify and seek solutions for problems affecting either side.

Also in the plan going forward will be ways to further reduce trade barriers between the two countries and defend against efforts to capture generic cheese names like parmesan, asiago and feta for the exclusive use of some European producers.

Signing the memorandum for the United States were Jim Mulhern, president and CEO of the National Milk Producers Federation, and Tom Suber, president of the U.S. Dairy Export Council. Signing for Mexico were Salvador Álvarez Morán, president of the Mexico Livestock Association (CNOG) and Juan Carlos Pardo, president of the National Chamber of Industrial Milk (CANILEC).

Mulhern and Suber characterized the summit as re-energizing a relationship forged under the North American Free Trade Agreement (NAFTA), which came into force in 1994. Mulhern described NAFTA as an example of a trade agreement that substantially benefits both countries.

“Since NAFTA, our markets have converged seeing both U.S. and Mexican dairy farmers growing. U.S. dairy exports to Mexico have increased significantly, while Mexico’s internal milk production has also seen expansion.”

“At the same time,” added Suber, “volatile markets, increased imports from third countries and consumer misinformation about dairy products pose challenges for the dairy industries in both countries that can be best solved through both industries working together.”

Formal goals of the U.S.-Mexico Dairy Alliance include unifying efforts of dairy producers and industries in both countries, maintaining a communication channel between the industry organizations, and analyzing and seeking mutually beneficial solutions to problems affecting the dairy industry in both countries.

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The U.S. Dairy Export Council (USDEC) is a non-profit, independent membership organization that represents the global trade interests of U.S. dairy producers, proprietary processors and cooperatives, ingredient suppliers and export traders. Its mission is to enhance U.S. global competitiveness and assist the U.S. industry to increase its global dairy ingredient sales and exports of U.S. dairy products. USDEC accomplishes this through programs in market development that build global demand for U.S. dairy products, resolve market access barriers and advance industry trade policy goals. USDEC is supported by staff across the United States and overseas in Mexico, South America, Asia, Middle East and Europe.

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

 

 

 

 

 

 

 

 

 

USDA announced in early August that the MPP margin for the May-June period fell to $5.76 per hundredweight, the lowest margin level since the program began in 2014. Early August futures for feed and milk prices indicate that MPP margins should rebound sharply from that level, with USDA’s futures-based forecast projecting the bimonthly MPP margin to be approximately $7.50 per hundredweight for the July-August period, but rising to around $10 per hundredweight later in the year. The Department assigned a probability of only 15 percent or less that the bimonthly MPP margin will fall below the $8 coverage level during any period for the remainder of 2016 and through 2017. USDA’s MPP margin forecasts are updated daily at: http://www.fsa.usda.gov/FSA/pages/content/farmBill/fb_MPPDTool.jsp.

Dairy farmers currently have from now until Sept. 30 to enroll in the Margin Protection Program for coverage in 2017, or to change their coverage level if they are already participating in MPP. NMPF’s Future for Dairy website offers a variety of educational resources to help farmers select the desired coverage level: https://www.nmpf.org/margin-protection-program-2014-farm-bill.

At their June meeting, the NMPF Scholarship Committee selected three graduate students to receive awards as part of the 2016 NMPF National Dairy Leadership Scholarship Program. These students are conducting research in areas that will benefit dairy cooperatives and producers.

Scholarships were awarded to:

• Matthew Borchers, a PhD candidate in Dairy Systems Management at the University of Kentucky, who is studying the effect of housing environment on bedding bacterial profiles and immunological function of dairy cattle.
• Brittany Shonka-Martin, a PhD candidate in Animal Science at the University of Minnesota, who is studying a comparison of feed intake, frame size, body weight, and production efficiency of ProCROSS versus Holstein cows.
• Jennifer Spencer, a PhD candidate in Animal Physiology at the University of Idaho, who is studying the role of aspirin on prostaglandin secretion and alternative synchronization protocols to improve pregnancy rates in lactating dairy cows. 

This fall in Nashville, Tenn., NMPF will join the National Dairy Board and United Dairy Industry Association to host its joint annual meeting. From October 31-November 2, dairy industry leaders will get together and share in their common accomplishments and challenges, as well as discuss the best paths to follow for the industry's future. Registration information is online here.

Several prominent speakers will be featured at the 100^th anniversary meeting of NMPF. Stuart Rothenberg, a leading political analyst, will share his humorous and captivating thoughts about the likely outcome of this year’s historic presidential election, and what’s at stake for the dairy industry.

Nina Teicholz is an investigative journalist and author of the New York Times bestseller “The Big Fat Surprise: Why Butter, Meat & Cheese Belong in a Healthy Diet.” She will discuss how her research and book has upended the conventional wisdom on dietary fat and challenged the very core of nutrition policy.

Leigh Anne Tuohy, the inspirational subject from the real-life story and movie, “The Blind Side,” will speak to luncheon attendees about recognizing the full potential of individuals in their communities and to find value in those who society has deemed valueless.  The banquet entertainers will be the Last Bandoleros, a high-energy country-rock group.

Registration for this year’s meeting will be made available later this week. In the meantime, be sure to view NMPF’s Annual Meeting page for more information.

Registration is now open for the inaugural FARM Program Evaluator’s Conference, a two-day event from November 2-3, 2016, in Nashville, Tenn., following NMPF’s annual meeting Oct. 31-Nov. 2.

The event will provide professional development opportunities for the more than 370 trained FARM Program evaluators to network, hear from engaging speakers and interact with each other. Conference sessions will include discussions on the latest animal well-being research, crisis management and communications training, as well as round table discussions and interactive activities about FARM Program challenges and opportunities.

Attendees will also have the opportunity to participate in an optional stockmanship training hosted in partnership with the National Cattlemen’s Beef Association’s (NCBA) Beef Quality Assurance Program. This session teaches handling methods to improve gathering, sorting, chute work, parlor movement and transportation of dairy cattle. Attendees will learn how to reduce handling stress and discuss how producers can have a significant economic – as well as quality-of-life – advantage when applied on the farm.

Registration information and further details can be found on the FARM Program website.

NMPF’s Farmers Assuring Responsible Management (FARM) Program will host a full day of programming during next month’s 49th annual conference of the American Association of Bovine Practitioners (AABP) in Charlotte, N.C.

On Sept. 16, FARM will lead a day-long session filled with panels and speakers who will discuss the critical role veterinarians play in responsible dairy cattle care. Panels will cover why the FARM Program was created, its recent successes and future goals, and the latest in animal health research.

The day-long session will begin with a panel featuring prominent industry leaders including NMPF President and CEO Jim Mulhern; Rick Smith, President and CEO of Dairy Farmers of America; Mike McCloskey, President of Select Milk Producers and Barb O’Brien, President of DMI and the Innovation Center for U.S. Dairy. These distinguished panelists will provide a grounding for attendees on why on-farm practices have become consumer trust issues and how proactive policies and programs, like FARM, are the key to the dairy community’s long-term success.

The Friday session will also help AABP veterinarians realize their role in helping dairy producers understand and meet FARM Program guidelines, as well as learn how to respond proactively to customer expectations around animal care.

FARM Program Administrator and NMPF Chief of Staff Emily Meredith stressed the importance of the relationship between veterinarians and dairy farmers, saying: “We are grateful to AABP for allowing us to host a session and further engage the nation’s veterinary leaders and discuss the future of the FARM Program.”

NMPF’s Farmers Assuring Responsible Management (FARM) Program is assuming management of an environmental sustainability assessment module, the organization announced last month. Previously called Farm Smart and managed by the checkoff-funded Dairy Management Inc., the new FARM Environmental Stewardship will become a voluntary component under the overall FARM program umbrella.

The new offering will be available to interested cooperatives and proprietary processors in early 2017.

The FARM Environmental Stewardship module integrates the methodology and science of Farm Smart, a carbon footprint assessment tool created by the Innovation Center for U.S. Dairy. The Farm Smart science-based models are being fully integrated into FARM Environmental Stewardship, but will be updated in the future through a partnership between NMPF and the Innovation Center.

FARM Environmental Stewardship program will allow for the collection and dissemination of information on energy use and greenhouse gas emissions (GHG). The assessment will also help dairy producers identify potential efficiency gains and cost savings, offering them the ability to track progress in a secure, confidential platform.

FARM plans to release webinars, online tutorials, training materials and other resources for those interested in utilizing this new component. It will also be previewed at the first-ever FARM Program Evaluator Conference this November in Nashville, Tenn. More information can also be found on the FARM Program website.

NMPF endorsed bipartisan legislation introduced in the House of Representatives last month that would clarify the exemption for dairy farms and other producers from jurisdiction under the Resource Conservation and Recovery Act (RCRA).

The Farm Regulatory Certainty Act (H.R. 5685), sponsored by Rep. Dan Newhouse (R-WA), would make clear that the RCRA law, enacted in 1976 to govern solid wastes in landfills, is not intended to regulate agricultural operations like dairy farms. NMPF believes the RCRA statute has been used to inappropriately target agriculture, specifically dairy and livestock producers, even if they have demonstrated that they have been following approved plans for using manure as a fertilizer.

The new bill comes in response to litigation that claimed a group of farms had inappropriately handled and stored animal manure under the RCRA law, even though RCRA should not have governed such farming practices.

“This legislation would help address the growing confusion among farmers about the application of environmental regulations to their operations,” said Jim Mulhern, president and CEO of NMPF.  “The RCRA law was not intended to govern farms, and Congress needs to enact this bipartisan legislation to reinforce that point.”

NMPF also endorsed Senate legislation introduced last month that would help dairy farmers increase their utilization of technologies that can improve water and air quality and maximize the value of nutrients. Introduced by Senators Sherrod Brown (D-OH) and Pat Roberts (R-KS), S. 3248 will modify Section 48 of the tax code to make biogas systems and nutrient recovery technologies eligible for an already-existing 30 percent investment tax credit to cover capital costs. A similar bill was introduced in the House in June.

This needed policy change will help dairy farmers to reduce their environmental footprint, both on their farms and in their communities.