NMPF was heartened by the vote in the House of Representatives late last month to pass the Preserving America’s Family Farms Act. This legislation, sponsored by Rep. Tom Latham (R-IA), and cosponsored by more than 90 other members, prohibits the Secretary of Labor from finalizing or enforcing regulations in the future that would change the definition of the ‘parental exemption,’ change the student learner exemption, and significantly redefine what practices would be acceptable for youth under the age of 16 in which to participate.

Even though the Department of Labor earlier this year withdrew its contentious proposed rule restricting the work that children could do on farms, NMPF still remains concerned that the issue could surface again at some point in the future.

“Although the Obama Administration has said it won’t go down this path again, NMPF wants to be certain that subsequent administrations don’t attempt something similar, which is why this bill was needed,” said Jerry Kozak, President and CEO of NMPF. “We will continue to encourage the Labor Department to work with rural stakeholders to develop education programs to reduce accidents to young workers and promote safer agricultural working practices.”

The U.S. Farmers and Ranchers Alliance (USFRA), of which NMPF is a member, will host another two-day Food Dialogues session this fall to discuss how food is produced, with a special focus on the use of antibiotics and biotechnology, and how these methods are portrayed in the media. Additional details, including event moderators and other speakers, will be announced in the next several weeks. In the interim, USFRA has created a section of its website where individuals can sign up for more information and receive updates as they become available.

The meeting will be held November 15 in New York City and will be modeled after the Food Dialogues session held earlier this summer in Los Angeles. That meeting, held in late June 2012, brought together entertainment movers and shakers, chefs, academics, large restaurant operators, journalists, local leaders, and farmers and ranchers for an in-depth conversation about food.

In addition, this summer USFRA is looking for a handful of farmers and ranchers who are proud of what they do and eager to share their stories of continuous improvement with others. The winners of this nationwide search for the “Faces of Farming and Ranching” will be announced in January 2013, and will put a real face on today’s agriculture. Dairy farmers can nominate others – or themselves – by going to www.fooddialogues.com.

ARLINGTON, VA – The National Milk Producers Federation (NMPF) is asking members of Congress, as they return home for the August congressional recess, to meet with struggling dairy farmers in their districts to discuss the perilous economic conditions affecting farmers, and the urgent need for Congress to pass a new farm bill yet in 2012.

“NMPF believes this type of one-on-one dialogue will enable members in both the House and the Senate to see firsthand the need for passing a five-year farm bill, including the vital reforms to the nation’s dairy policy in the form of the Dairy Security Act (DSA),” said NMPF President and CEO Jerry Kozak.

“We hope that Members of Congress will take time to visit local dairy farms to experience up-close the challenges dairy farmers are facing and understand why it is so imperative to pass a five-year farm bill which includes a better safety net for farmers,” Kozak said. “We are approaching a crisis comparable to or worse than that of 2009, when dairy farmers lost $20 billion in equity and thousands of farmers went out of business.”

“When you factor in additional operating costs, such as labor and energy costs, on top of the sky-high price of feed caused by the ongoing drought, dairy farmers are currently selling their milk for far less than the cost of production,” said Kozak. “The Dairy Security Act would give producers and their bankers the assurances they need to continue their operations through these tough times.”

Kozak said that farmers themselves should take this message to their elected officials during the next four weeks, with the hope that Congress can be spurred to action after Labor Day.

“We applaud the pledge from Senate Agriculture Committee Chairwoman Debbie Stabenow (D-MI) and House Agriculture Committee Chairman Frank Lucas (R-OK), and Ranking Members Pat Roberts (R-KS) and Collin Peterson (D-MN), to continue their push for full passage of a comprehensive, five-year farm bill after the August recess. NMPF will continue to stand behind our agricultural leaders in this effort to pass a five-year farm bill this year.”

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 30 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.

Out of the different options for what to do now with farm policy, doing nothing should not be one of those. At least, it’s not an option that benefits taxpayers, farmers, or even our federal legislators on Capitol Hill.

After plowing enormous effort this year into creating a new and better farm program, first in the Senate, then in the House, the path forward for lawmakers is now very murky. Congress made major progress earlier this summer when the House Agriculture Committee approved a bill in July that closely resembles the version of the Farm Bill that passed the full Senate in June.

But the process hit a huge pothole after that, with the House leadership deciding not to bring the Ag Committee’s bill to a vote. Instead, they initially tried to gin up support for a one-year extension of the current farm bill. But after NMPF and other farm groups objected, the House then passed a disaster aid package on Aug. 2nd that does essentially no good for most dairy farmers. This is a completely different approach than that taken by the Senate, and with Congress now in recess for more than a month, farm policy is stuck in limbo.

What’s worse, between the political parties’ two conventions this summer, and pressures to focus on campaigning rather than governing this fall, it’s unclear when the Farm Bill will get the attention to bring it to fruition. We need to make certain that this politically-driven inertia, while not unusual just months before a major election, doesn’t derail the work that’s been accomplished so far.

The new bill, both in the Senate and House, is smart policy and smart politics: both versions save the government money compared to the status quo. Passing a final bill will be a boon to taxpayers, and represents another opportunity to chip away at the federal deficit at a time when budget and economic issues are the big concerns for our nation. And it’s hard to believe that, especially in a year when the Corn Belt is suffering the worst drought in half a century, Congress will ignore farm country issues, and votes, mere months before a pivotal election.

Let me also briefly address why the Dairy Security Act provisions in both bills are also the only choice for farm policy going forward. The Senate has already approved a new safety net for dairy farmers that provides them margin insurance – both a basic program, as well as a supplemental level – that offers better protection than that offered by the current MILC program, and the price support program. Those who want this insurance offering – and it’s an opportunity, not an obligation, to enroll in the program – will be asked to temporarily trim their milk output when conditions are poor as part of the market stabilization element of the measure.

The Senate, both at the Committee level, and in the full body, saw this program as a reasonable approach to improving risk management for dairy farmers, while reducing taxpayer costs – and, critically, reducing the potential risk to taxpayers. The market stabilization element reduces the cost of the program by helping prevent prolonged periods of poor margins that will generate significant USDA insurance payments to those enrolled in it.

In the House, however, a failed attempt was made in the Agriculture Committee by Reps. Bob Goodlatte and David Scott to strip out the market stabilization program. This approach would have gutted the insurance protection of dairy title by putting more risk and more cost onto the backs of farmers. It would have increased their out of pocket costs, reduced the amount of milk they could insure, and perhaps most appallingly, it would have zeroed out any ability to indemnify new milk production during the lifespan of the farm bill.

For those who profess to be concerned about the future growth of the U.S. dairy sector, this last provision alone should be a deal-breaker, so let me repeat it: any farmer who would bring on new milk production during the five-year span of the bill would not be able to insure any of that growth. This to me is really “supply management.” Just as the MILC program doesn’t offer protection to the majority of the current milk supply because of its tight production cap, this watered-down margin insurance program would not offer insurance coverage to a single pound of any expanded milk output beyond a farm’s original base. It’s a de facto quota system that would severely hamper the ability of our industry to be the healthy, growing, future-oriented business that we all say we desire.

This is why any future attempt to fight this battle again needs to be defeated, and why when Congress does turn its focus to the Farm Bill, they need to preserve the version already approved by the House Agriculture Committee. Choosing to do nothing is not leadership, nor a choice that makes sense.

    Proposed Effort Would Provide No Real Relief for Dairy Farmers

The National Milk Producers Federation (NMPF) today issued the following statement expressing strong opposition to attempts by the House to extend a version of the current farm bill by one year and reiterating support for the inclusion of Dairy Security Act (DSA) in any final farm bill package:

“The current safety net for dairy farmers is not sufficient in dealing with scenarios like we are currently facing from high feed costs associated with the ongoing drought,” said Jerry Kozak, President and CEO of NMPF. “If we are going to be serious about providing better protection for the nation’s dairy farmers while at the same time providing taxpayer savings from current programs, then we should pass a new farm bill which includes the DSA, which was included in both the Senate-passed farm bill and the farm bill recently passed out of the House Agriculture Committee.

“Under the proposed extension, the Milk Income Loss Contract Program (MILC) would not pay out for the remainder of 2012 or for 2013 while the nation’s dairy farmers are experiencing razor-thin margins. The proposed 2008 farm bill extension does nothing to ensure dairy farmers and their bankers that they will have any safety net to deal with the present and future periods of tight margins and extreme volatility.

“Our current dairy policy is outdated and costs more to taxpayers while the new provisions actually save taxpayer dollars. Dairy farmers have spent more than three years working closely with legislators in crafting comprehensive dairy policy reform so that they have a stronger safety net while at the same time reducing the burden for taxpayers. Any outcome that does not include these carefully crafted provisions would be a failure to lead agriculture in the right direction.”

“We urge both the House and the Senate to reject an extension of our failed policies.”

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 30 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.

From Jerry Kozak, President and CEO of NMPF:

ARLINGTON, VA – “We are heartened by the vote in the House of Representatives yesterday to pass the Preserving America’s Family Farms Act. This legislation, sponsored by Rep. Tom Latham (R-IA), and cosponsored by more than 90 other members, prohibits the Secretary of Labor from finalizing or enforcing such regulations in the future. This includes any effort, similar to what was made this year, to change the definition of the ‘parental exemption,’ change the student learner exemption, and significantly redefine what practices would be acceptable for youth under the age of 16 in which to participate.

“Even though the Department of Labor earlier this year withdrew its contentious proposed rule restricting the work that children could do on farms, NMPF remains concerned that the issue could surface again at some point in the future.

“Although the Obama Administration has said it won’t go down this path again, we want to be certain that subsequent administrations don’t attempt something similar, which is why this bill is needed. We continue to encourage the Labor Department to work with rural stakeholders to develop education programs to reduce accidents to young workers and promote safer agricultural working practices.”

(Before the vote, NMPF and a coalition of other agriculture organizations sent a letter to the House of Representatives, urging them to preserve the ability of youth to gain training and education by working on the farm.)

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 30 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.

From Jerry Kozak, President and CEO of NMPF:

“The International Dairy Foods Association (IDFA) has mischaracterized the real issue facing dairy farmers this summer.

“Summer heat always leads to a slowdown in milk output – this year will be no different – but the USDA reported last week that milk production in the second quarter of 2012 was up 2.0% compared to 2011, while the first quarter was up a whopping 5.3%. The U.S. is well on track to produce a record volume of milk this year, a hot summer notwithstanding.

“As a result, farmers’ prices this June were down 18% from June 2011, 30 cents a gallon less. Consumers really should be asking if the price they pay at retail for dairy products have dropped by the same amount. The answer is, retail prices haven’t changed, even as the farm price this year has reflected the fact that supply has raced ahead of demand. Meanwhile, grain prices reflect the opposite: that supplies are short in relation to demand.

“The dairy policy provisions in the Senate and House farm bills are tied to the critical difference between the farmer’s milk price, and the cost of feed. When that margin contracts to dangerously low levels, those who volunteer to use the proposed program will be insured against these low margins – and they are also expected to trim their milk output until margins reach healthy levels.

“These summer temperatures, and the possibility of a poor crop harvest, are exactly why we need a dairy farm safety net that takes into account higher feed prices, and also gives us a tool to better align supply and demand. Relying on the weather to perform this process is foolish.”

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 30 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.

From Jerry Kozak, President and CEO of NMPF, and Randy Mooney, Chairman of NMPF and dairy farmer from Rogersville, Missouri:

“The passage of the 2012 Farm Bill by the House Agriculture Committee is a deeply satisfying accomplishment for the many farmers who support the measure, including America’s dairy farmers.

“In particular, the House bill includes dairy reforms modeled after NMPF’s Foundation for the Future program. These elements represent badly-needed improvements in our safety net for milk producers. We’re very appreciative that members of the Agriculture Committee have preserved the carefully-crafted economic and political compromises that went into the creation of the dairy program in the Farm Bill. The fundamental package of dairy policy reforms supported by NMPF remained unchanged throughout the Agriculture Committee’s debate this week.

“We commend Congressmen Frank Lucas and Collin Peterson for their leadership and diligence in shepherding the Farm Bill to this point. The fact that a large bipartisan majority of the committee voted in favor of the bill bodes well for its ultimate success, and we look forward to working with the full House as it considers this legislation in the near future. We are pleased at the progress made in the House, but we also know that much work lies ahead.”

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 31 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.

From Jerry Kozak, President and CEO of NMPF, and Randy Mooney, Chairman of NMPF and dairy farmer from Rogersville, Missouri:

“We commend those members of the House Agriculture Committee who today defeated an amendment to the 2012 Farm Bill that would have undone years of consensus-building and compromise among dairy farmers. The Goodlatte-Scott dairy amendment was defeated by a margin of 29-17.

“We appreciate the hard work devoted to this issue by the leaders of the committee, including Chairman Frank Lucas, Ranking member Collin Peterson, and other 29 dairy reform supporters on the agriculture committee, who clearly understood the hard work that has taken us to this point.

“We urge the committee to proceed with final approval of the 2012 Farm Bill this week, and will work to help assure passage of the measure in the full House of Representatives, and ultimately, obtain a new and better safety net program for America’s dairy producers.”

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 31 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.

Congress needs to make clear that regulations designed to protect the environment against toxic waste do not ensnare dairy farmers and others who raise farm animals, the House Subcommittee on Environment and the Economy was told late last month.

The hearing on Capitol Hill reviewed legislation introduced by Rep. Billy Long (R-MO), designated as H.R. 2997, or the Superfund Commonsense Act. It would clarify that manure is not included in the meaning of “hazardous substance” as defined by the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) regulations, and also would eliminate the reporting requirement for releases associated with manure under the Emergency Planning & Community Right to Know Act (EPCRA) regulation.

NMPF had been working for several years with Congressman Long and others to provide greater regulatory assurances to dairy farmers that these laws and regulations are not designed or intended to impact dairy farmers. The CERCLA law was created more than 30 years ago to regulate Superfund sites, and the EPCRA law was created after that for similar purposes.

Testifying on behalf of the dairy industry, Walter Bradley, who works for Dairy Farmers of America, reminded committee members that concentrated animal feeding operations (CAFOs) and their environmental releases are subject to both state and federal laws. Bradley told the panel that “we are not seeking an exemption from the federal Clean Water Act (CWA) or the Clean Air Act (CAA) or similar state laws including any federal or state worker protection laws. We are merely seeking clarification under CERCLA and EPCRA that animal manure does not necessitate an emergency response nor does it create a Superfund site.”

“In recent years, however, we have seen litigation challenge the use of animal manure as a fertilizer by claiming contamination and damage to natural resources. The issue of CERCLA/EPCRA’s applicability to the livestock industry has been discussed in Congress several times in the last decade. I believe congressional intent is clear. When the law was passed, Congress did not intend for manure to be regulated as a hazardous substance,” Bradley said.

In the last week of its term, the Supreme Court struck down a significant portion of Arizona’s effort to prosecute and deter illegal immigrants, but left one key part of that state’s laws intact.

The mixed high court ruling, along with the recent executive order by the Obama administration to stop the deportation of some younger, undocumented individuals, fully illustrated how that, regardless of which path is chosen, the few options for immigration reform remain controversial and divisive. At the same time, these developments also showed how critically necessary it is to resolve the immigration policy conundrum, especially for farmers and other employers concerned with maintain and recruiting a workforce.

The court upheld the law’s directive that state and local police may check the immigration status of people they stop when they suspect them of lacking legal authorization to be in the United States. The justices unanimously stated that federal law already requires immigration officials to respond to status checks from local authorities, and therefore federal immigration law does not preempt this section of the Arizona law.

However, much of SB1070 was overturned as interfering in the federal government’s role as the sole arbiter of immigration law. In a 5-3 ruling, the court said Arizona in effect had tried to set up a parallel enforcement system that punished illegal immigrants more harshly and interfered with congressional authority over the nation’s borders. The court rejected parts of the state law that made it a state crime for illegal immigrants to seek work, to fail to carry immigration papers, and that authorized warrantless arrests of people suspected by state and local police of committing deportable offenses.

This decision highlighted the need for continued efforts to reform federal immigration laws, and NMPF will continue to work with regulators and lawmakers to create workable solutions for dairy farmers and their workers.

Canada has been extended an invitation to actively join the ongoing Trans-Pacific Partnership (TPP) trade agreement negotiations.

NMPF and the U.S. Dairy Export Council (USDEC) strongly supported Canada’s participation in the TPP negotiations. Both groups agreed that since Mexico has been invited to join the talks, it only makes sense for the third member of the North American Free Trade Agreement (NAFTA) to join as well. However, whereas Mexico and the United States already have removed all dairy trade barriers between them, this is not the case with respect to trade between Canada and the United States—a situation which the two organizations said must be remedied.

According to the dairy groups, the U.S. government’s approval of Canada’s participation in the TPP talks has been accompanied by a very clear understanding of U.S. expectations that all Canadian trade barriers against U.S. dairy products must be eliminated. This requirement was fundamental to gaining the groups’ support.

“The U.S. dairy sector hopes to see significant gains from a well-negotiated TPP and welcomes Canada’s membership as an important step towards achieving this goal,” said Jerry Kozak, president and CEO of NMPF. “The United States and Canada have had a free trade agreement since 1988, but it did not include dairy products. It is time for this oversight to be changed and we welcome this opportunity to finally make that happen.”

Meanwhile, legislation was introduced in the Senate last month to extend Permanent Normal Trade Relations (PNTR) to Russia. Senator Baucus (D-MT), Finance Committee Chairman; Senator John Thune (R-SD), International Trade Subcommittee Ranking Member; Senator John Kerry (D-MA), Foreign Relations Committee Chairman; and Senator John McCain (R-AZ), Armed Services Committee Ranking Member, introduced the bipartisan legislation in order to enable U.S. companies to expand exports to Russia when it joins the World Trade Organization (WTO) this year.

Russia is expected to complete the necessary administrative and regulatory changes and thereafter to actively join the WTO this August. Those commitments include provisions relating to agricultural trade, which NMPF and USDEC believe will yield significant improvements in tariff levels as well as in how Russia deals with various regulatory requirements for imported dairy products.