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NMPF Thanks EPA for Allowing More Time to Consider U.S. Waterways Regulation

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The National Milk Producers Federation today thanked the Environmental Protection Agency for agreeing to allow more time to examine a controversial draft regulation expanding the waterways subject to pollution controls under the federal Clean Water Act.
“Dairy farmers are committed to protecting U.S. waters both voluntarily and under the Clean Water Act,” said NMPF President and CEO Jim Mulhern, “but the EPA needs to go about this effort in the right way. Allowing more time to consider EPA’s draft will give everyone the chance to adequately consider the issues raised in the draft and make it less likely the final regulation will be harmful to dairy farmers.”
NMPF represents dairy farmers producing most of the nation’s milk supply. In a May 30 letter, NMPF asked that the public comment period on EPA’s draft regulation be extended at least 90 days.
NMPF cited two reasons for requesting more time to consider the regulation:  First, the EPA and the Army Corps of Engineers have not completed the report providing the scientific underpinning for the regulation; and second, many of the key concepts discussed in the draft are unclear or subject to interpretation by government regulators.

“For dairy farmers to understand and assess the proposed changes, the science behind them must be clear and conclusive,” Mulhern said. “And yet, the draft relies on the scientific conclusions of an EPA report still under review by the agency’s Science Advisory Board.” Likewise, Mulhern said, many of the terms used in the draft, including terms like ‘‘floodplain’’ and ‘‘tributary,’’ and not well defined. “These terms are as murky at best, and, therefore, will create confusion for dairy producers.
“Given the scope and complexities of the proposed rule and its supporting documents, it was essential that EPA allow more time to consider the issues it raises,” Mulhern said. “NMPF appreciates that the agency has allowed the time needed to clarify these issues.”
EPA extended the comment period on the regulation 90 days, until October 20.
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The National Milk Producers Federation (NMPF), 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. For more on NMPF’s activities, visit our website at www.nmpf.org.

NMPF Board Meets to Review Farm Bill, Animal Care Issues

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NMPF’s Board of Directors met last week in Arlington, Virginia, for an update on several key issues of interest to dairy farmers and cooperatives, including the progress being made on implementing the new farm bill’s dairy safety net.

During a special dinner to celebrate the passage of the Farm Bill last Tuesday, NMPF President and CEO Jim Mulhern presented a plaque to Sen. Debbie Stabenow of Michigan (pictured at left), who as Chair of the Senate Agriculture Committee proved instrumental in helping shepherd the passage of the bill.
 
Mulhern reported to the board that the organization’s staff continue to interact with USDA officials developing the specific regulations that will govern the new Margin Protection Program established by the 2014 Farm Bill.  NMPF has been anticipating farmer questions and urging USDA to make the program as easy as possible for farmers to understand and use.  Karla Thieman, Senior advisor to USDA Secretary Tom Vilsack, reported to the NMPF Board that the agency is on track to release the rules governing initial program enrollment by the end of the summer.  
 
NMPF is developing an online dashboard calculator that will allow farmers to estimate future margins in order to help them make choices about MPP coverage levels.  That calculator will be available once final program details are known.  NMPF will continue to make available information and tools to help cooperatives explain the new MPP to farmers.
 
In other developments, given the continued interest and focus from customers about dairy farm animal care, the NMPF board discussed two updates to the National Dairy FARM program that will be voted on at its next meeting in October.  
 
The first measure is a resolution for consideration by the board that would require all FARM program participant companies to conduct second party evaluations on their direct-ship farms. All farms would also be included in the pool for third party verification.   The resolution is being shared with NMPF’s members (and other co-ops and processors not represented by NMPF) so that each organization can review the resolution and vote on adopting it in October.  
 
The second measure specifies a protocol to address allegations of willful animal mistreatment on farms enrolled in the program. Willful mistreatment is a violation of existing FARM program guidelines; the new protocol establishes procedures to address such violations.   The focus of this process is to ensure a farm’s practices are consistent with the program’s guidelines – not to exclude the farm from future participation in the FARM program. This new process will help enhance the integrity of the FARM program to customers while helping farms regain full FARM program participant status by implementing the steps identified in the animal care improvement plan. 
 
The Board of Directors also seated a new member representing Cooperative Milk Producers Association, Inc.  Jimmy Kerr joins the board, replacing long-time member Bill Blalock, who has retired from the Board.  Kerr has been on CMPA’s board for more than 20 years, serving as Vice President of the coop for the last six.  He, his son Alex and wife Donna milk 200 registered Holstein on 600 acres in Amelia, Virginia.
 

Young Cooperators Come to DC for Capitol Hill Visits

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Nearly 60 dairy farmers from dozens of states fanned out on Capitol Hill last week in conjunction with NMPF’s summer board of directors meeting and Young Cooperator grassroots lobbying session.

The dairy producers (including Roxy Helman, Traci Hamstra and Kelly Dugan  (l-r), pictured with Sen. Jeff Flake of Arizona) discussed key issues of interest to the dairy setor, including trade policy, GMO food labeling standards, and the need for immigration reform.

NMPF to FDA: Instead of Issuing New Labeling Regs, Enforce Those on Dairy Imposters

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In a May 5 letter, NMPF questioned why the FDA is focused on clarifying the use of terms like “dried cane syrup” or “evaporated cane juice” at the same time it allows soy, rice, nut, and hemp products to repeatedly define themselves as milk in violation of FDA’s own long-standing food standards.
 
“It seems rather disingenuous for the Agency to utilize its often-referenced ‘limited resources’ to issue additional labeling guidance, while simultaneously not enforcing existing regulations pertaining to the identity of foods” like imitation dairy products, NMPF wrote. “The Agency has blatantly disregarded the names displayed on the labels of imitation dairy products (e.g., ‘soy milk’, ‘rice yogurt’, etc.) in the current marketplace.  
 
“While the FDA has made its position clear through warning letters to several manufacturers … these actions have been too infrequent to be effective, essentially creating a labeling landscape free of enforcement,” NMPF said.  
 
The letter was the latest in a long series of NMPF attempts to get the FDA to enforce requirements for the labeling of these imposters, many of which are not nutritionally equivalent to real dairy products.  
 
“Manufacturers of these imitation products have misled American consumers for far too long – making a mockery of current labeling regulations – by usurping the ‘dairy halo’ associated with wholesome and nutritious milk and dairy products,” the letter said. 
 

House Members Join Senate in Condemning EU Tactic on Cheese Names

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A bipartisan group of more than 175 House members has joined a majority of the U.S. Senate in urging the Obama administration to fight back against European Union efforts to keep U.S. dairy companies from using common cheese names like parmesan and feta both in export markets and in the United States.

In a mid-May letter, the House members urged U.S. Trade Representative Michael Froman and Agriculture Secretary Tom Vilsack to use transatlantic trade talks to address a variety of export barriers hampering the U.S. dairy industry. Chief among them was the EU’s gratuitous use of “geographical indications” to limit the use of familiar food names in other countries. 
 
The letter followed similar correspondence sent in March by more than 50 senators.  
 
Two co-chairs of the Congressional Dairy Farmer Caucus, Reps. Reid Ribble (R-WI) and Peter Welch (D-VT), spearheaded the House letter, with help from NMPF, the U.S. Dairy Export Council and the International Dairy Foods Association. The letter pointed out that negotiations with the European Union over the proposed Transatlantic Trade and Investment Partnership are an opportunity to address protectionist measures that block U.S. dairy sales to 500 million consumers.
 
“The EU is taking a mechanism that was created to protect consumers against misleading information and instead using it to carve out exclusive market access for its own producers,” the letter said. “This type of barrier to trade and commerce defies the fundamental goals of a trade agreement, and we urge you to work aggressively against the EU’s efforts ….” 
 
NMPF also presented on the importance of the issues the House letter addresses – tariffs, common names and other nontariff barriers confronting U.S. dairy exports to the EU – to U.S. and EU negotiators during the May TTIP stakeholders forum in Arlington, Virginia.

Co-ops, Processors Demands Access to Japanese, Canadian Markets in Trade Deal

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If Japan and Canada renege on pledges to open their markets to U.S. dairy products, don’t count on our support for the Trans-Pacific trade pact. That’s the message nearly 40 cooperatives and dairy processing companies – all members of NMPF or the U.S. Dairy Export Council – sent to the Obama administration in early June. 
 
NMPF and USDEC initiated the united industry message to underscore the need for comprehensive access to Japanese and Canadian markets in any final Trans-Pacific Partnership agreement. The message – in the form of letters to U.S. Trade Representative Michael Froman and Agriculture Secretary Tom Vilsack – came on the heels of Japanese statements that it would not agree to abolish tariffs on key agricultural products, including dairy. The ambitious trade agreement has been under discussion for several years.
 
“Dairy industry support of the TPP is not unconditional,” said NMPF President and CEO Jim Mulhern. “If access to our products is not assured by Japan and Canada, we will find it difficult to support the final agreement. In addition, we could re-examine our support for fast-track TPP approval in Congress.”  
 
Tom Suber, President of USDEC, added: “…it is critical that Japanese and Canadian participation in TPP be meaningful and comprehensive across all dairy products. It is entirely unacceptable to have such sizable, sophisticated economies refusing to undertake the necessary openness that they agreed to upon entering TPP.”
 
In addition to urging U.S. negotiators to remain focused on opening up the Japanese and Canadian markets, the dairy organizations stressed the importance of addressing the lingering impacts of New Zealand government policies that have advantaged the country’s leading dairy firm at the expense of other dairy exporters. 
 

NMPF to EPA on Waters Regulation: ‘Clear as Muddy Water’

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Citing incomplete science and unclear terminology, NMPF has asked the Environmental Protection Agency to delay a decision on its controversial draft regulation expanding the waterways subject to regulation under the Clean Water Act.  

In a letter to EPA Administrator Gina McCarthy, NMPF’s President and CEO Jim Mulhern said dairy farmers are committed to protecting U.S. waters both voluntarily and under the Clean Water Act. However, Mulhern said, “it is imperative that the EPA go about this effort in the right way, in light of the potential impact of this measure on dairy farmers. It would be a disservice to farmers to rush this proposal through the review process without sufficient scientific support or time to better understand the complexities of the issue.”

 
The regulation expands the waterways covered under the 1972 Clean Water Act to nearly all those connected to U.S. navigable waters. NMPF noted that EPA and the Army Corps of Engineers have not completed the report providing the scientific underpinning for the regulation and that many of its key concepts – including ‘‘riparian area,’’ ‘‘floodplain,’’ ‘‘tributary,’’ and ‘‘significant nexus’ – are either undefined or subject to interpretation by government regulators. “These terms are as clear as muddy water, and, therefore, will create confusion for dairy producers,” NMPF said.  
 
It added: “Given the scope and complexities of the proposed rule and its supporting documents, NMPF requests an extension of the comment period, either to 90 days beyond the current deadline, or 90 days beyond EPA’s release of the final connectivity report” providing scientific basis for the regulation.” 
 

CWT Helps with another 14.2 Million Pounds of Dairy Exports

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Cooperatives Working Together helped member cooperatives sell another 14.2 million pounds of dairy products overseas in May. The voluntary, farmer-funded program will provide assistance on 53 overseas sales from seven different cooperatives: Dairy Farmers of America, Foremost Farms, Maryland & Virginia Milk Producers Association, Michigan Milk Producers Association, Northwest Dairy Association (Darigold), Tillamook County Creamery Association and Upstate-O-AT-KA. The products included 7.1 million pounds of American-type cheese, 4.2 million pounds of butter, and 3 million pounds of whole milk powder. All will be delivered before the end of the year.

 
This brings the year-to-date total to over 111 million pounds of dairy product export sales assisted by CWT, the equivalent of 1.618 billion pounds of milk on a milkfat basis. 
 

New Faces of Farming to be Selected

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The U.S. Farmers & Ranchers Alliance® is looking for four new national spokesmen and women to help put a human face on agriculture. Those selected will make public appearances, talk to the media and be featured in print ads on behalf of USFRA.  For the past 18 months, dairyman Will Gilmer of Alabama (R) has been one of the four national Faces of Farming and Ranching.
 
Eight finalists will be selected in September to participate in a public vote process and undergo a formal USFRA judging process. The winners will be announced October 24, in conjunction with Food Day. 
 
The four new Faces of Farming and Ranching will serve for a year. They will receive a $10,000 stipend to help cover costs at home while they are at USFRA events and a $5,000 donation to a charity of their choice. They also will receive professional media and speaker training.  
 
USFRA is an alliance of more than 80 agriculture organizations committed to engaging with consumers who have questions about how today’s food is grown and raised. 
 
Applications for the next round will be collected through mid-July. Those interested should contact NMPF Senior Vice President for Communications Chris Galen at cgalen@nmpf.org. In addition to filling out a form, applicants must submit a short video about their farm. 
 

NMPF & USDEC Members Insist that TPP Must Deliver Meaningful Access for All Dairy Products

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The majority of U.S. dairy farmer cooperatives and dairy processing companies, all of which are members of the National Milk Producers Federation (NMPF) or the U.S. Dairy Export Council (USDEC), today threatened to withdraw support from the pending Trans-Pacific trade agreement if Japan and Canada refuse to follow through on pledges to provide comprehensive market access for U.S. dairy products. Their letter can be found here.
NMPF and USDEC initiated this united dairy industry message intended to underscore the need for comprehensive market access in all dairy tariff lines with both nations in order to ensure that TPP negotiations result in a high standard trade agreement that can be held up as a model for future agreements.
“USDEC has been one of the most vocal champions of the importance of including Japan and Canada in TPP since these markets offer strong opportunities for our members to expand U.S. dairy exports,” stated Tom Suber, President of USDEC. “However, it is critical that their participation in TPP be meaningful and comprehensive across all dairy products. It is entirely unacceptable to have such sizable, sophisticated economies refusing to undertake the necessary openness that they agreed to upon entering TPP.”
Jim Mulhern, president and CEO of NMPF noted that, “As we have made clear in our letter to Ambassador Froman and Secretary Vilsack, we want to see very strong outcomes on market access with Japan and Canada, and our industry remains prepared to match the level of ambition of those countries. To be successful, any eventual TPP agreement must result in more open dairy markets in Japan and Canada.”
In addition to urging U.S. negotiators to remain focused on opening up the Japanese and Canadian dairy markets, members of both organizations also stressed the importance of addressing the lingering impacts of New Zealand government dairy policies that have intentionally advantaged a single national champion at the expense of other competitors.
NMPF and USDEC members expressed strong hopes that TPP negotiations will result in a final package that can garner the endorsement of the U.S. dairy industry without requiring a re-examination of the industry’s support for Trade Promotion Authority as a critical tool in the approval of well-negotiated trade agreements.
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TEXT OF NMPF AND USDEC LETTER TO USDA AND USTR
June 3, 2014
Ambassador Michael Froman
United States Trade Representative
600 17th Street, NW
Washington, DC 20508
Secretary Thomas Vilsack
U.S. Department of Agriculture
1400 Independence Ave., SW
Washington, DC 20250
Dear Ambassador Froman and Secretary Vilsack:
The undersigned dairy cooperatives and proprietary processors greatly appreciate the intensive efforts undertaken by Administration officials and you personally to obtain commitments from Japan and Canada on market access commensurate with the ambitious trade goals embraced by the charter members of the Trans‐Pacific Partnership (TPP).
It is clear, however, that Japan, as well as Canada, continues to strongly resist living up to the ambitious trade goals it obligated itself to undertake upon joining TPP negotiations. The U.S. dairy industry has been a leading and long‐standing advocate for comprehensive market access and the inclusion of Japan and Canada in TPP. Yet, we have held realistic expectations and recognize that the perfect should not be the enemy of the good. However, as reported in the media, Japan’s recent comments on market access progress show appallingly little substantive movement, and come nowhere close to our expectations. Canada will likely try to base its decisions on dairy market access off of what Japan commits to do for its most sensitive agricultural sectors, thus heightening the importance of achieving meaningful dairy market access to Japan.
We urge you to insist that TPP must remain a high standard trade agreement that can be used as a model for future U.S. free trade agreements. All TPP countries must do their part to ensure this undertaking lives up to its founding goals of comprehensive and meaningful market access. We are prepared to match the level of ambition of those countries, and urge you to press both to provide a very strong dairy package. Our industry must not provide any new access in this agreement that has not been given by Japan and Canada.
In addition, it is vital that TPP address serious non‐tariff policies by the New Zealand government that have uniquely advantaged the largest dairy exporting company in both the TPP region and the world. Tariffs are a critical component of this agreement, but not the only element.
It remains our hope that TPP negotiations with Japan and Canada can be concluded in a manner that will allow for strong support across our industry. However, our support for TPP is not unconditional. The elements cited here, which largely remain unresolved, must be concluded in a positive manner or our industry will find it difficult to support the final agreement. Similarly, our industry has been a strong supporter of Trade Promotion Authority (TPA) and would expect to continue to support it in the future. However, should Japan and Canada not commit to minimum standards and basic market‐based principles as many other TPP countries have done, we would need to re‐examine our support for TPA.
We stand ready to assist in delivering an agreement with market access provisions that we can support. Thank you, again, for the continuing efforts of you and your team.
Sincerely, 
Agri-Mark
Methuen, Massachusetts
Arthur Schuman Inc.
Fairfield, New Jersey
Associated Milk Producers Inc.
New Ulm, Minnesota
BelGioioso Cheese Inc.
Denmark, Wisconsin
Bongards’ Creameries
Norwood Young America, Minnesota
Cayuga Milk Ingredients
Auburn, New York
Commercial Creamery Co.
Spokane, Washington
Continental Dairy Products, Inc.
Artesia, New Mexico
Cooperative Milk Producers Association’s
Blackstone, Virginia
Dairy Farmers of America, Inc.
Kansas City, Missouri
Davisco Foods International, Inc.
Le Sueur, Minnesota
Ellsworth Cooperative Creamery
Ellsworth, Wisconsin
FarmFirst Dairy Cooperative
Madison, Wisconsin
First District Association
Litchfield, Minnesota
Foremost Farms
Baraboo, Wisconsin
Glanbia Foods, Inc.
Twin Falls, Idaho
Great Lakes Cheese Company
Hiram, Ohio
High Desert Milk
Burley, Idaho
Hilmar Cheese Company Inc.
Hilmar, California
HP Hood LLC
Winchester, Virginia
Idaho Milk Products
Jerome, Idaho
International Ingredient Corporation
St. Louis, Missouri
J.M. Smucker Company
Orrville, Ohio
Land O’Lakes
Arden Hills, Minnesota
Leprino Foods Company
Denver, Colorado
Maryland & Virginia Milk Producers Cooperative
Reston, Virginia
MCT Dairies, Inc.
Millburn, New Jersey
Michigan Milk Producers Association
Novi, Michigan
Mid-West Dairymen’s Co.
Rockford, Illinois
Northwest Dairy Association/Darigold
Seattle, Washington
Proliant Dairy Ingredients
Melrose, Minnesota
Sartori Company
Plymouth, Wisconsin
Schreiber Foods, Inc.
Green Bay, Wisconsin
Scott Brothers Dairy / Chino Valley Dairy Products
Chino, California
Select Milk Producers 
Artesia, New Mexico
St. Albans Cooperative Creamery, Inc.
St. Albans, Vermont
Swiss Valley Farms
Davenport, Iowa
United Dairymen of Arizona
Tempe, Arizona
Upstate Niagara Cooperative, Inc.
Buffalo, New York

 

New Dairy Safety Net Woven with Key Principles

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In the aftermath of the economic bloodbath created by the Great Recession of 2008-2009, a period during which dairy farmers collectively lost $20 billion in equity, it became painfully obvious that a complete reform of farm policy was needed.  The National Milk Producers Federation spent the next two years developing an innovative means of protecting farmers against low milk prices and, just as importantly, high feed costs – because rapidly rising feed costs had become the more urgent issue in the past decade.
After years of struggle on Capitol Hill to get a new dairy program enacted by Congress, what has emerged from this challenging process is an unprecedented opportunity for dairy producers to work with the federal government to gain protection from the unpredictable, catastrophic price shocks that unfortunately have become common in recent years.  While important questions about the new Margin Protection Program (MPP) still need to be answered by the Agriculture Department, it’s already clear that this new safety net will provide much improved economic security for the domestic dairy sector in the 21st century.  Here are some reasons why:
Flexibility: Farmers can choose their own level of margin protection each year.  The USDA is expected to create an open enrollment window in the preceding year, during which farmers can decide their coverage options for the following year. Each year, a producer’s historic base can be insured from 25% to 90%, from the premium-free $4/cwt. coverage level, up to $8/cwt.  NMPF has suggested to USDA ways that the program can be made farmer-friendly, while at the same time helping keep costs of the MPP at reasonable levels.
Affordability: NMPF worked with Congress to ensure that the MPP’s premium levels are affordable to farms of all sizes, including those that may not have previous experience with private-sector risk management tools.  Beyond the nominal annual sign-up fee of $100, basic coverage at $4/cwt. is free, at all levels of milk production.  Prices for coverage rise in proportion to the degree of risk covered. But, particularly for the first four million pounds of coverage, a valuable safety net can be obtained for mere pennies per hundredweight each year. And risk coverage on production over four million pounds is very reasonable at lower and mid-levels of margin protection.
Equitability: The MILC program formally ends on Sept. 1st.  The practical value of this program eroded over the past decade, as its annual coverage cap is now exceeded by the average-size dairy, which produces closer to four million pounds annually.  With the majority of our milk supply coming from farms not adequately covered by the MILC program, the new MPP provides better protection because it has no insurance coverage limitations.  This is a far more equitable way to protect our milk production – and dairy farm – infrastructure than the previous size-denominated efforts. We need modern risk management going forward, not a program designed for the past.
Adaptability: One of the arguments against the previous safety net employed by USDA is that the dairy product price support program – even at a ridiculously inadequate price level around $10/cwt. – made it harder for domestic markets to clear during periods of oversupply, and at the same time, harder for the U.S. to compete internationally.  It was easier to sell surplus cheese, butter and skim milk powder to the government than to commercial markets.  That problem was solved by terminating the price support program.  The USDA is no longer a customer for surplus dairy commodity production, at any price. This means processors will adjust their product mix to what domestic and international customers want, not what USDA CCC purchasing standards dictate.  The MPP will help the industry further adapt to the ebb and flow of global markets.
These four principles were the ones NMPF pursued in its efforts to create a new dairy program.  Enshrining these principles in the new MPP is a tribute to the work of dairy farmers who, despite significant opposition, persevered in pushing for something new and better. Yes, this program is not the whole loaf that we sought. But it will be far, far better than what it replaces.
USDA still has important decisions to make, from the timing of first-year enrollment, to the schedule of premiums to be paid by enrollees, to how farms with different ownership structures will be treated. It also has to flesh out how the complementary dairy product donation program will operate if and when margins become extremely low. Those issues will be resolved in the coming months.
But the bottom line is this is a once-in-a-generation revolution in risk management in America’s dairy sector, allowing our 50,000 farmers the opportunity to preserve equity in a way that their fathers and grandfathers never could.  Those who enroll will have skin in the game in the form of their premium payments, so this is not a government handout.  Most of all, the new MPP is an illustration that cooperation and hard work have their rewards.

NMPF Sends USDA Recommendations on New Safety Net Program

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NMPF has sent a series of recommendations to the Agriculture Department on how to implement the new dairy safety net included the 2014 farm bill. The Margin Protection Program, or MPP, is a voluntary risk management plan that will address fluctuations in margins caused by high feed costs as well as low milk prices. NMPF was instrumental in the program’s enactment.  
 
NMPF’s recommendations, forwarded in mid-April, cover 17 issues that are either unclear in the legislation or were left up to USDA to decide. Included are the timing for first-year and subsequent registrations; the timing and structure of premium payments from farmers enrolled in the program; and how farms with different ownership structures will be treated. Several recommendations involve the operation of the dairy product donation program that will be triggered when margins are extremely low. 
 
NMPF President and CEO Jim Mulhern said he is pleased with discussions with the Agriculture Department over the new program so far. “While USDA has not yet made final determinations on any specific program provisions,” he said, “we are pleased with the positive dialogue and level of understanding we’ve seen.” 
 
Mulhern said NMPF’s goal is to achieve a Margin Protection Program that is both producer-friendly and maintains fiscal integrity in future years.  The program is scheduled to be rolled out on or before September 1st.