The past few weeks have generated a flurry of action on the labor front. Two weeks ago, Rep. Lamar Smith (R-Texas) introduced a bill mandating use of the Electronic Verification System (E-Verify) for all employers (H.R. 2164). This follows a Supreme Court decision legalizing state mandated electronic verification for employers. The legislation was followed by a companion bill, the Accountability Through Electronic Verification Act (S. 1196), which was introduced by Sen. Chuck Grassley (R-Iowa).

This past month, Sen. Robert Menendez (D-N.J.), along with Senators Patrick Leahy (D-Vt.), Harry Reid (D-Nev.), Dick Durbin (D-Ill.), Chuck Schumer (D-N.Y.), John Kerry (D-Mass.) and Kirsten Gillibrand (D-N.Y.), introduced the Comprehensive Immigration Reform Act of 2011 (S. 1258). This bill includes the AgJobs legislation language, a dairy H2A-fix introduced by Sen. Leahy and Sen. Mike Enzi (R-Wyo.) earlier this year, and some form of a mandatory electronic verification system.

Despite all of the action on this issue, unfortunately it seems as if Congress is far from reaching any type of compromise on labor issues in the near future. The National Milk Producers Federation continues to seek a workable, passable program and is working with all organizations that pursue the same goal: to help U.S. dairy farmers obtain the necessary labor to operate efficiently.

Last month, by an overwhelming vote of 73-27, the U.S. Senate overwhelmingly supported an immediate repeal of the Volumetric Ethanol Excise Tax Credit (VEETC) and the 54-cent ethanol import tariff. The amendment, offered by Sen. Dianne Feinstein (D-Calif.) and Sen. Tom Coburn (R-Okla.), was during the floor debate of a bill related to the Economic Development Administration.

Following the VEETC vote, the Senate rejected an amendment offered by Sen. John McCain (R-Ariz.) that would have prohibited funds from going to the construction of ethanol blender pumps. However, at nearly the same time, the House of Representatives passed a similar measure to Sen. McCain’s, which was introduced by Rep. Jeff Flake (R-Ariz.), by a vote of 283-128. That amendment was ultimately included in the final version of the House Agriculture Appropriations bill approved in June.

The future of these provisions is unclear. Without question, both of these bills, if they were to become law, will look significantly different than they do today. Meanwhile, several Senators are working to find a compromise on the immediate future of the ethanol industry. While still ultimately repealing VEETC and the tariff, a new agreement has reportedly been reached between Sen. Amy Klobuchar (D-Minn.), Sen. John Thune (R-S.D.) and Sen. Feinstein to allow for a transition period for the ethanol industry and continue to encourage the development of non-corn biofuels. The compromise would eliminate the tax credit by July 31, which would provide a savings of $2 billion for the remainder of the year. Of that, $1.3 billion would be directed to deficit reduction. The remaining money would be split between a number of lesser tax credits, including the production tax credit for cellulosic biofuel, an alternative fueling infrastructure tax credit and the small-producer tax credit. If enough support can be garnered in the coming weeks, there is a possibility this agreement could be tied to the debt limit deal currently being debated between Congress and the White House.

In June, Sen. Jim Inhofe (R-Okla.) and Sen. Kent Conrad (D-N.D.) sent a letter to Environmental Protection Agency (EPA) Administrator Lisa Jackson requesting the implementation timeline be extended for the Oil Spill Prevention, Control and Countermeasure (SPCC) rule for farmers. Justifying the need for an extension, the letter lays out a number of concerns with SPCC compliance, including the lack of access to professional engineers, ambiguity regarding recently released Clean Water Act guidance, and confusion over certain responsibilities of ownership. Altogether, 33 senators signed the letter to EPA.

Currently, farms in operation on or before August 16, 2002, must maintain or amend their existing SPCC plan by November 10, 2011. Any farm that started operation after August 16, 2002, but before November 10, 2011, must prepare and use a plan on or before November 10, 2011.

To aid farmers with compliance, NMPF, in part with USDA’s Natural Resource Conservation Service (NRCS), developed an SPCC template to assist dairy producers with SPCC compliance. The NMPF SPCC template is available online. Also, the template isn’t only for dairy producers. According to NRCS, 84% of farmers may be able to utilize the template.

If you have questions about this issue, please contact Jamie Jonker or David Hickey.

The Obama Administration took yet another step this week towards the final resolution of the long-running NAFTA dispute with Mexico regarding cross-border trucking access. Lack of U.S. compliance with NAFTA on this issue has resulted in tariffs being applied to many U.S. cheese exports to Mexico since last August.

The U.S. and Mexico announced on July 6th an agreement on the final details of a plan to put in place a long-haul cross-border trucking program that prioritizes U.S. road safety while simultaneously providing a path towards compliance with U.S. trade obligations to Mexico.

As part of that July 6th announcement, Mexico reported that, effective immediately, it would cut in half the level of all retaliatory tariffs on U.S. exports, meaning that the tariffs on targeted cheeses will drop from 20-25%, to 10-12.5%. This step provides an immediate measure of relief to U.S. exports while the Department of Transportation (DOT) works to evaluate and approve the first Mexican trucking carrier. Once that first carrier is approved for operation by DOT, which is expected in the coming weeks, the remainder of the tariffs on U.S. exports will be lifted by Mexico. NMPF continues to impress upon Congress the importance of not interfering in this process and to underscore that the pains that DOT is taking to ensure that upholding our trade commitments in no way compromises U.S. road safety.

From Jerry Kozak, President and CEO of NMPF

The Supreme Court today 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 illustrates 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 show 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 highlights 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.

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.

Senate Bill Includes H-2A Visa Program for Dairy Farms

ARLINGTON, VA – The National Milk Producers Federation (NMPF) today endorsed a new Senate bill containing a comprehensive reform of the nation’s immigration laws – and, importantly, provisions to ensure continued access to qualified workers by America’s dairy farms.

On Thursday, seven U.S. Senators introduced the “Comprehensive Immigration Reform Act of 2011”, S. 1258. The lead sponsor is Senator Robert Menendez (D-NJ), who introduced the bill along with Sens. Harry Reid (D-NV), Patrick Leahy (D-VT), Richard Durbin (D-IL), Charles Schumer (D-NY), Kristen Gillibrand (D-NY) and John Kerry (D-MA).

“A healthy U.S. dairy sector depends on a viable workforce, which is something our current immigration policies struggle to provide. The status quo is broken, and it can’t be fixed simply through more enforcement measures – we need a comprehensive fix,” said Jerry Kozak, President and CEO of NMPF.

The Comprehensive Immigration Reform Act of 2011 includes the dairy H-2A visa eligibility provision (S. 852) that was introduced earlier this spring by Sen. Leahy, and backed by NMPF. The reform package also includes the “AgJobs” proposal, and the DREAM Act, long sought after by NMPF and other agricultural groups. Both a mandatory employment verification system and a program to require undocumented immigrants in the U.S. as of June 1, 2011, to register with the government, learn English, and pay fines and taxes on their way to becoming Americans, are a part of this act as well.

“Dairy farms and other agricultural employers increasingly have been under the microscope for their employment practices,” Kozak said. “It is critical that comprehensive immigration reform is passed into law before more employers are targeted by the enforcement agencies. Our producers need a means to hire qualified foreign-born workers to do the jobs that Americans don’t want to do.”

A survey released in 2009 of the labor and hiring practices of U.S. dairy operations found that many farms are heavily dependent on foreign laborers, and that the dairy sector would be crippled if it had no access to immigrant workers. That survey is available on the NMPF website.

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 31 cooperatives produce the majority of the U.S. milk supply, making NMPF the voice of more than 40,000 dairy producers on Capitol Hill and with government agencies.

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) applauded this week’s introduction of legislation to extend Permanent Normal Trade Relations (PNTR) to Russia. Senator Baucus (MT), Finance Committee Chairman; Senator John Thune (SD), International Trade Subcommittee Ranking Member; Senator John Kerry (MA), Foreign Relations Committee Chairman; and Senator John McCain (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.

In order to ensure that U.S. companies will be able to take full advantage of those improved policies, Congress must pass PNTR and graduate Russia from the Trade Act of 1974’s Jackson-Vanik amendment. The latter was designed to strongly encourage the Soviet Union to permit the emigration of Jews and prisoners of conscience, a goal that was achieved decades ago.

“U.S. dairy exports have been blocked from the Russian market for almost two years due to ongoing dairy certificate negotiations,” said Tom Suber, president of USDEC. “Congressional passage of PNTR with Russia and repeal of the Jackson-Vanik amendment with respect to Russia is necessary to ensure that we are able to fully avail ourselves of the strong WTO accession package negotiated by the United States with respect to agricultural trade with Russia. We believe PNTR is critical to helping U.S. dairy companies re-enter this market on workable trading terms.”

“Russia is one of the world’s largest dairy importers and therefore is a vital destination for U.S. dairy products,” agreed Jerry Kozak, president and CEO of NMPF. “At a time when Russia and its Customs Union partners are seeking to ensure that imported foods are of high-quality, the United States should be a clear preferred supplier given the strict food safety and milk quality requirements in place in our country.”

Both organizations urged Congress to move ahead swiftly with approval of PNTR and repeal of Jackson-Vanik in order to help expand export opportunities for U.S. dairy. Last year, Russia imported a total of $2.1 billion from the world, making it a key destination for butter, cheese and other high-value dairy products. The United States continues to expand exports around the world, and access to all markets is critical to the industry’s ability to grow. Membership in the WTO will ensure that Russia is required to play by international rules or face the prospect of legal challenges to their system, a resolution avenue that the United States cannot utilize until it establishes full PNTR without restriction.

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 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.

 

To help educate dairy producers about the benefits of Foundation for the Future (FFTF), NMPF has announced its Summer Grassroots Tour: 12 meetings in July and August that will bring together dairy producers and other key industry representatives to discuss the dairy policy reform programs proposed in Foundation for the Future.

Meanwhile, a legislative draft of those policies is about to be introduced for further congressional consideration. And, importantly, the initial review of that legislation by the Congressional Budget Office indicates that FFTF will save the government money in the future, compared to current dairy program spending.

“The U.S. dairy industry has called for dramatic changes in dairy policy, and Foundation for the Future answers that call,” says Jerry Kozak, NMPF President and CEO. “With Congress about to really begin sinking its teeth into dairy policy reform, it’s crucial that dairy producers also become more familiar with the many advantages of Foundation for the Future over the status quo. That’s why we have an aggressive outreach schedule this summer.”

The meetings are slated to take place throughout the United States between July 12 and August 22. Each three-hour meeting will feature an in-depth presentation, and question and answer session led by NMPF’s Kozak, along with other staff. Meeting locations include:

• Olympia, Wash., Red Lion Hotel – July 12
• Visalia, Calif., Holiday Inn – July 13
• Lubbock, Texas, Overton Hotel & Conference Center – July 18
• Alexandria, Minn., Holiday Inn – July 20
• Dubuque, Iowa, Grand River Center – July 21
• Lansing, Mich., Ramada Lansing Hotel & Conference Center – July 26
• Green Bay, Wis., Comfort Suites – July 27
• Stevens Point, Wis., Ramada Hotel – July 28
• Harrisburg, Pa., Holiday Inn Harrisburg – East – August 8
• Syracuse, N.Y., Holiday Inn Syracuse/Liverpool Airport Hotel – August 10
• Ocala, Fla., Hilton – August 12
• Nashville, Tenn., Embassy Suites Nashville Airport – August 22

Dairy producers, milk processors, and other key industry stakeholders are encouraged to attend. Visit www.futurefordairy.com for details on the meetings, email summermeetings@nmpf.org, or call NMPF at (703) 243-6111 for additional meeting and registration information. There are no fees to attend; however, space is limited, so register early. The direct link for registration is: www.registration123.com/NMPF/2011FFTF/.

NMPF also recently updated the Foundation for the Future website to accommodate details about the Summer Grassroots Tour, and enhance visitors’ exploration of FFTF dairy policy reform programs. Updates at www.futurefordairy.com include improved accessibility of individual Foundation for the Future reform program details, the addition of producer testimonials, and the option to sign up as an official Foundation for the Future supporter.

The website also offers dairy producers and industry stakeholders interactive tools and resources, including a margin protection calculator that helps producers determine an appropriate coverage level for supplemental margin insurance under Foundation for the Future’s Dairy Producer Margin Protection Program. Producers can input their annual milk production and select the percentage of base milk production the program will cover – along with any optional additional coverage – to generate scenarios of how the Dairy Producer Margin Protection Program will benefit their individual operations.

The members of Cooperatives Working Together (CWT) reiterated their support this week for a multi-year program to help boost U.S. dairy exports, and thus help improve the economics of dairy farmers, with the stipulation that the program must be supported by 70% of the nation’s milk supply.

At a meeting Tuesday in Alexandria, Virginia, the farmer-run committee overseeing CWT voted to renew the program for two years, starting in January 2012 and running through December 2013 – once a 70% level participation level can be reached. Current membership pledges amount to 68% of the milk supply.

“Cooperatives Working Together remains an incredibly important self-help tool for the nation’s dairy producers. The members of CWT want to keep it going into the future because it helps farmers access the fastest-growing markets for their milk, which are overseas,” said Jerry Kozak, President and CEO of NMPF, which manages CWT. “We fully expect the producer and cooperative community see the value in supporting a program that benefits every dairy farmer and that we will achieve our goal.”

Since the start of 2011, the program has used funds carried over from the previous year to help export 39 million pounds of cheese, to 20 countries. The renewal effort will ensure that the program will have new revenue coming in from its members starting next year to further bolster the export activities funded by CWT.

The CWT program no longer funds herd retirements or cow removals, and will focus exclusively on assisting member organizations with dairy exports. Kozak noted that the export market “has been incredibly helpful to farmers in finding new homes for their milk output, but the loss of export markets in 2008 and 2009 illustrated what can happen when we aren’t able to compete internationally. That’s why CWT is so critical – it gives us a privately-run and funded enterprise that makes U.S. dairy exports competitive in global markets.”

Kozak said that an export-focused CWT program is an important complement to the proposed economic restructuring of dairy policy embodied by the reforms proposed in NMPF’s Foundation for the Future program (the details of which can be found at www.futurefordairy.com). With approximately 15% of the nation’s milk production headed for exports markets in 2011, “CWT will work in tandem with policy changes we want Congress to adopt to ensure that America’s dairy farmers continue to have the ability to access and benefit from growing world demand for U.S. dairy products.”

Kozak said that at the next meeting of the CWT operating committee, in mid-November, the membership participation level will be assessed to verify that the 70% participation level has been reached. The two cent membership dues will subsequently start being collected in January 2012.

The shape may have shifted from pyramid to plate, but the message remains the same: dairy is an important part of the daily diet, for adults and children alike.

For that reason, NMPF and other dairy organizations praised the USDA’s new MyPlate education tool, which provides a clear and visual message that a healthy diet is comprised of a variety of nutrient-rich foods, including low-fat and fat-free milk, cheese, and yogurt.

America’s dairy farmers and processors commended the USDA for including a light blue circle depicting a serving of “Dairy” – milk, cheese, or yogurt – next to the dinner plate to illustrate how to build a healthy eating plan, including a serving of dairy at every meal.

“Dairy foods are rightfully being recognized — from the school house to the White House — as an important part of everyone’s diet,” noted NMPF President and CEO Jerry Kozak. “USDA’s new MyPlate, the simple visual metaphor of a serving of dairy products alongside a plate, says it’s vital to consume three servings of low-fat and fat-free dairy foods every day.”

Dairy contributes beyond the glass, as well. A serving of nutrient-rich, low-fat or fat-free milk, cheese, or yogurt has, on average, at least as much protein as an egg. In fact, dairy foods contribute 18 percent of the protein to the American diet. Simple steps, like adding lower fat cheese to a veggie sandwich or topping a baked potato with fat-free plain yogurt can give any meal a nutrient boost.

Americans currently average about 2 daily servings of dairy foods, while USDA’s dietary guidelines encourage 3 daily servings of low-fat or fat-free milk and milk products for adults and children nine years and older. This underscores the importance of a direct, visual metaphor like the MyPlate tool in relaying this guidance to a population being urged to get more nutrients per calorie at every meal.