Washington, D.C. – The added costs imposed by mandatory labeling for genetically-modified organisms could increase the price of food to consumers while driving smaller farms out of business, according to Vermont dairy farmer Joanna Lidback (pictured speaking at a congressional hearing in Washington, D.C., in July 2014), who said that the use of GMO crops is important to her farm’s economic sustainability.

In testimony presented Tuesday before the House Agriculture Committee, Lidback, who farms in Westmore, Vermont, with her husband and two young sons, said that building an economically viable small family business has led them to “fully embrace using technology to farm better and with less impact on our surroundings” – and part of that entails using GMO seed varieties that grow best in New England.

“We would want the choice of the best seed regardless of breeding technology; genetic engineering offers the best options,” she said, explaining that their 200 acre farm in Vermont’s Northeast Kingdom has a shorter growing season that limits the variety of crops they can grow. If marketplace demands were to force them to use non-GMO feed grains – most of which would be certified organic – the farm’s feed bill would more than double each month, from $5,328 to $12,000.

“I do not see how we could profitably farm in the long term with those increased feed costs,” Lidback said. “I also believe that biotechnology enables us to lessen the environmental impact that growing can have because less fertilizer and pesticides are used to grow an abundant crop.”

Lidback testified on behalf of Agri-Mark Dairy Cooperative, which is a member of both the National Council of Farmer Cooperatives and the National Milk Producers Federation. Lidback keeps a blog documenting her family’s life on the farm (farmlifelove.com).

She told the committee’s members that attempts at mandatory labeling of foods derived from GMO processes are aimed at arbitrarily limiting choices, for farmers and consumers alike. She said that consumers have a right to know “that the meals they serve at the family dining table every night are safe and nutritious. But a very small percentage of the population should not be able to impose their personal, non-science based food preferences on the rest of us – prompting food prices to increase and driving farms like mine out of business.”

Lidback said that mandatory labels on foods with biotech ingredients are not necessary, but that “if consumers are to drive some sort of label requirement, I believe it should be done in a cohesive way at the federal level.” Lidback said that consumers who want information about how their food is sourced can get information from companies using voluntary labeling systems, including the USDA’s Certified Organic program and the use of third-party verification of a “Non-GMO” label.

She said a patchwork quilt of state laws, whereby some states such as Vermont impose labeling requirements that neighboring states do not, would raise questions “about whether or not the product is the same. This serves no one’s interest – not consumers, not farmers, not food producers.”

 

The National Milk Producers Federation, based in Arlington, VA, develops and carries out policies that advance the well-being of dairy producers and the cooperatives they own. The members of NMPF’s cooperatives produce the majority of the U.S. milk supply, making NMPF the voice of more than 32,000 dairy producers on Capitol Hill and with government agencies.

Agri-Mark, with more than a billion dollars in 2014 sales, markets more than 300 million gallons of farm fresh milk each year for about 1,200 dairy farm families in New England and New York. The cooperative is headquartered in Methuen, Mass., has been marketing milk for dairy farmers since 1913, and actively represents their legislative interests in the Northeast and in Washington, D.C.

The National Council of Farmer Cooperatives is a national association representing America’s farmer cooperatives. There are nearly 3,000 farmer cooperatives across the U.S. whose members include a majority of our nation’s more than 2 million farmers, ranchers and growers. These farmer cooperative businesses handle, process, and market agricultural commodities and related products; furnish farm supplies; and provide credit and associated financial services. Earnings from these activities are returned to their members on a patronage basis. Farmer cooperatives also provide jobs for nearly 250,000 Americans, many in rural areas, with a combined payroll of over $8 billion. Additional information about NCFC can be found at www.ncfc.org.

The national dairy organizations of the United States, Australia and New Zealand today issued a joint letter to their respective trade and agriculture officials, pressing for an ambitious, comprehensive and commercially meaningful outcome in the Trans-Pacific Partnership (TPP) negotiations. Representing three of the leading dairy exporting nations in the world, the groups believe TPP provides a historic opportunity to eliminate trade distortions and ensure an abundance of safe and affordable products for consumers, while providing increased opportunities for dairy farmers and processors.

The dairy organizations specifically called for “significantly increased dairy market access” with Japan and Canada, two of the 12 partners in the treaty. Noting that negotiations with Japan have made progress, the organizations said vital work remains and the ambitious goals of the partnership should not be sacrificed for the sake of expediency. They also urged negotiators to turn a greater spotlight on Canada, saying the country needs to provide more meaningful market access for all dairy products if it is to remain a participant in the treaty.

“Our neighbor to the north needs to come to the table now with a substantial offer on dairy,” said Connie Tipton, president and CEO of the International Dairy Foods Association. “The U.S. dairy industry will not accept another deal like the North American Free Trade Agreement that allows Canada to exclude dairy. TPP was launched to open markets, not create more barriers.”

Jim Mulhern, president and CEO of the National Milk Producers Federation, echoed that sentiment. “The U.S. dairy industry is tired of having the door slammed in its face,” he said. “While progress has been made with Japan, the job there is not yet finished. Meanwhile Canada is dragging its feet. We simply will not tolerate an agreement that doesn’t provide the opportunity for us to sell significantly more U.S. dairy products to both countries.”

Tom Suber, president of the U.S. Dairy Export Council, noted the increased demand for everything from milk to ice cream in the Asia-Pacific markets. “The United States is ideally suited to help meet increased demand for a wide range of dairy products throughout the TPP region. The full range of U.S. exporters deserves to see expanded access for their products that allows them to keep growing their sales over time.”

While traditional tariff barriers remain widespread for dairy products, trade is also restricted by more subtle, non-tariff measures, such as the European Union’s aggressive stance on geographical indications, as was demonstrated in its trade agreement with Canada. The organizations said they expect TPP to ensure that new market access will not be hindered by these types of non-tariff barriers, which are aimed at thwarting imports.

The letter provided a forum for the three countries to deliver a united message to negotiators on these key priorities, but also noted that the organizations each have additional criteria by which they will judge the final TPP outcome.

 

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 nearly 32,000 dairy producers on Capitol Hill and with government agencies.

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 U.S. Dairy Export Council prohibits discrimination on the basis of age, disability, national origin, race, color, religion, creed, gender, sexual orientation, political beliefs, marital status, military status, and arrest or conviction record. www.usdec.org

The International Dairy Foods Association (IDFA), Washington, D.C, represents the nation’s dairy manufacturing and marketing industries and their suppliers, with a membership of 550 companies within a $125-billion a year industry. IDFA is composed of three constituent organizations: the Milk Industry Foundation (MIF), the National Cheese Institute (NCI) and the International Ice Cream Association (IICA). IDFA’s nearly 200 dairy processing members run nearly 600 plant operations, and range from large multi-national organizations to single-plant companies. Together they represent more than 85 percent of the milk, cultured products, cheese, ice cream and frozen desserts produced and marketed in the United States. IDFA can be found at www.idfa.org.

“That makes exports critical to the health of my farm and our dairy industry at large,” Kappelman said, adding that, because overseas population growth outpaces domestic growth, exports are the key to continued expansion for dairy farmers.

Kappelman, who farms in Two Rivers, Wisconsin, said it is not coincidence that enormous growth in dairy exports occurred while the United States was implementing several free trade agreements, and that each of those agreements was approved by using Trade Promotion Authority. “In every case, our dairy exports to countries with which we implemented free trade agreements have shown substantial, sometimes dramatic, increases,” he said.

Right now, Kappelman said, Congress should approve new TPA legislation to complete a favorable Trans-Pacific Partnership agreement between 12 Pacific Rim countries. “Significant access to TPP’s most protected dairy markets – Japan and Canada – is absolutely essential to us, and both of those countries have pointed to the importance of having TPA in place as TPP talks enter their final stage,” he said.

“The TPA legislation introduced last year put a strong new priority on tackling nontariff barriers, which have been cropping up much more frequently,” Kappelman added. He said these range from unjustifiable health and safety measures to efforts to give European Union producers an advantage in international markets by misusing Geographical Indications.

“Our negotiators have moved the ball forward on many key issues but more work still needs to be done,” Kappelman said. “To ensure that we conclude a high-standard, balanced agreement that delivers net trade benefits for the U.S. dairy industry, we need to have TPA in place.”

Kappelman testified at a hearing on the importance of trade to agriculture. He heads NMPF’s International Trade Committee and is chairman of Minnesota-based cooperative Land O’Lakes, Inc. He is also a board member of the U.S. Dairy Export Council.

 

The National Milk Producers Federation, based in Arlington, VA, develops and carries out policies that advance the well-being of dairy producers and the cooperatives they own. The members of NMPF’s cooperatives produce the majority of the U.S. milk supply, making NMPF the voice of more than 32,000 dairy producers on Capitol Hill and with government agencies.

The results of a long-awaited U.S. Food and Drug Administration analysis of milk samples from nearly 2,000 dairy farms clearly demonstrate that regulations to keep drug residues out of milk are effective in protecting public health, according to NMPF.

In the analysis, made public March 5, FDA’s Center for Veterinary Medicine analyzed the milk samples for 31 different drugs. More than 99 percent of samples were found to be free of drug residues.

“The report confirms that America’s dairy farmers are delivering on their commitment to provide safe and wholesome milk to consumers,” said NMPF President and CEO Jim Mulhern. “The findings are a positive affirmation of our milk safety, although we need continued education among farmers, veterinarians, and pharmaceutical companies, and outreach on how to prevent future trace levels of residues.”

In the analysis, FDA collected milk samples from 1,912 farms. About half the farms had been cited earlier for drug residue violations in market-bound meat. The remaining farms were randomly selected. FDA was checking to see if dairy farms with drug residue violations in meat were producing milk that also contained residues.

FDA confirmed 15 positives out of the 1,912 samples tested. That was 0.7 percent of the total. There was no significant difference in the results from farms with earlier drug residue citations and those randomly selected.

The FDA said the results “are encouraging and indicate that the current system of regulatory oversight results in high rates of industry compliance.” The agency said it remains confident in the overall safety of the U.S. milk supply.

NMPF joined nearly 400 other farm and food groups last month in urging the House and Senate budget committees not to reopen the 2014 farm bill in search of additional budget cuts.

In a February 23 letter, the groups noted it took three years to enact the farm bill, which eliminated direct subsidy payments to farmers and included other significant cuts. For dairy farmers, it eliminated three long-standing programs, and created the new Margin Protection Program.

“These difficult cuts were made across the farm safety net, conservation programs and nutrition programs,” the letter said. “The policy changes and reforms associated with these cuts are only now being fully implemented (and) no additional cuts to these programs should be considered, at least until these policies have time to take place and be thoroughly evaluated.”

The letter comes as the budget committees are gearing up to use a budget process known as reconciliation to require additional cuts in spending already approved by Congress. Also, the Obama administration has proposed $16 billion in cuts to federal crop insurance to offset commodity program spending beyond what was anticipated in the farm bill.

Legislation permanently extending the ability of family farmers and small businesses to write off capital purchases immediately, instead of over time, faces an uncertain future despite overwhelming approval in the House of Representatives in mid-February. H.R. 636 faces a rocky road in the Senate and a possible veto at the White House.

A permanent extension of the tax code’s Section 179 is one of NMPF’s legislative priorities for 2015. The provision is widely used by farmers to buy tractors and other farm equipment. In December, President Obama signed legislation extending Section 179, along with more than 50 other expired tax provisions, but for 2014 only.

“Dairy farming requires significant investments in machinery and equipment,” said NMPF President & CEO Jim Mulhern. “By allowing producers to immediately write off these purchases, Section 179 gives them an incentive to invest in their businesses while it reduces their record-keeping burden.

“Failure to permanently restore Section 179 will add to the financial strains on family farmers who already find it difficult to pass on their farms to the next generation,” Mulhern said.

Early in February, NMPF joined 33 other agricultural organizations in urging the House to approve a permanent extension of the tax credit, which passed 272 to 142.

NMPF and the U.S. Dairy Export Council urged Congress this week to enact new Trade Promotion Authority (TPA) legislation, saying it is crucial to securing well-negotiated trade agreements, including a pending Pacific Rim pact that must open key markets to more U.S. dairy products.

In a letter to Congress, NMPF and USDEC said renewing TPA, which expired in 2007, will increase congressional influence over trade negotiations and lead to agreements that are better for both the country and the dairy industry.

“By having a clear framework for participating in the process and identified priorities that a successful agreement must address, Congress increases its influence over these agreements as they are being written,” said NMPF President and CEO Jim Mulhern.

Added USDEC President Tom Suber: “TPA plays a key role in supporting a strong trade policy agenda. That is particularly important to the dairy industry, since it now exports the equivalent of one-seventh of its U.S. milk production.” Last year alone, Suber noted, the U.S. industry exported more than $7 billion in dairy products.

The dairy groups also urged Congress to become engaged in the final stages of negotiations with 11 other countries over the Trans-Pacific Partnership. Given the strong export potential with TPP countries, they said an agreement that increases imports without comparable increases in export openings would be a disservice to U.S. dairy farmers and dairy companies.

“To achieve an agreement that on balance offers net benefits to the U.S. dairy industry, access to the region’s most protected dairy markets – Japan and Canada – is imperative,” said Mulhern. “While some progress has been made in Japan, both of these countries need to open their markets to a full range of U.S. dairy products.”

House and Senate leaders overseeing trade and intellectual property issues expressed serious doubts about European efforts to shut the U.S. out of discussions on efforts to revise a global system for registering protected food names.

The planned changes to a treaty known as the Lisbon Agreement could severely restrict the use of many cheese names by marketers in countries that, like the United States, are not even signed on to the agreement.

Changes that would expand the scope of the agreement are scheduled to be considered at a 10-day international conference in May. But, under newly implemented rules, non-parties to the treaty are not allowed to participate fully, even though their food producers could be impacted enormously by the changes.

Only the parties to the actual agreement – about 30 nations, roughly half of them in Europe – can fully participate in the conference.

In a bipartisan letter, Senators Orrin Hatch (R-UT), Ron Wyden (D-OR), Chuck Grassley (R-IA) and Patrick Leahy (D-VT) and Representatives Paul Ryan (R-WI), Sandy Levin (D-MI), Bob Goodlatte (R-VA) and John Conyers (D-MI) urged the World Intellectual Property Organization to follow past practice by letting all WIPO-member countries have an equal voice in determining changes to the Lisbon Agreement.

Hatch, Wyden, Ryan and Levin head the Senate Finance and House Ways and Means committees, while Grassley, Leahy, Goodlatte and Conyers oversee both chambers’ judiciary committees.

Dairy leaders praised the House and Senate members for questioning WIPO’s process.

“The proposed changes in the Lisbon Agreement are clearly aimed at preventing U.S. dairy producers from using names in international trade that they have used for decades, such as feta, parmesan, havarti, asiago and others,” said Jim Mulhern, NMPF President and CEO. “Countries can strike treaties to address their own goals, but that should not be allowed to come at the expense of others’ long-standing and growing exports.”

NMPF has helped lead U.S. dairy interests in opposing European efforts to ban countries from using many common cheese names unless the products are made in a particular geographic area.

A day after the dairy industry asked President Obama to intervene in a protracted dispute between West Coast dockworkers and port operators, the White House dispatched Labor Secretary Thomas Perez to California to help the warring parties settle their differences. Seven days later, a tentative agreement was announced and the dockworkers went back to work.

The letter from NMPF, the U.S. Dairy Export Council and the International Dairy Foods Association was sent February 13. It said the nine-month-old labor dispute was crippling West Coast exports, including time-sensitive dairy products bound for Asian markets.

A day later, the White House announced it was sending Secretary Perez to California to urge both sides “to resolve their dispute quickly at the bargaining table.” Six days after that, on February 21, negotiators resolved the final issue and announced a tentative agreement.

Perez hailed the agreement for “bringing to an end what has become a significant (economic) headwind (with) too many innocent people and businesses suffering.”

The dispute involved 29 ports from San Diego to Seattle. There was no immediate word on how long it would take to clear the backlog of export shipments.

Cooperatives Working Together helped its member cooperatives in February get contracts to sell 5.3 million pounds of cheese and 4.4 million pounds of butter overseas. The contracted products, which represent the equivalent of 148.5 million pounds of milk on a milkfat basis, will go to customers in 10 countries on five continents.

Year-to-date, CWT has assisted member cooperatives who have contracts to sell 9.7 million pounds of cheese and 18.8 million pounds of butter to 18 countries.

Developed by NMPF, CWT is a voluntary export assistance program supported by dairy farmers producing 70 percent of the nation’s milk. By moving U.S. dairy products into world markets, CWT helps keep domestic inventories and dairy farmer milk prices at reasonable levels.