The Senate voted 81-17 on Feb. 2 to repeal the new tax reporting requirement known as the IRA form 1099. The amendment was offered by Sen. Debbie Stabenow (D-MI) to the Federal Aviation Administration reauthorization bill.

The 1099 mandate included in the new healthcare law required governments, nonprofits, and businesses of all sizes across the nation to report IRS information on virtually all non-credit card purchases totaling $600 or more with any vendor in a tax year. By requiring an employer to issue a 1099 for every $600 payment or for any series of payments that accumulates to $600, the amount of paperwork and compliance will drastically increase. If this provision is implemented, the mandate will impose substantial burdens on the backs small businesses – especially farms and ranches.

The House must now act on the same language or a similar amendment before 2012. The Small Business Paperwork Mandate Elimination Act of 201, (HR 4) introduced by Rep. Dan Lungren (R-CA) to repeal form 1099 information reporting requirements now has 263 cosponsors. NMPF urges members of Congress to support this effort.

NMPF, along with 27 other agriculture groups, have sent several letters of support to Congress regarding the reality of the 1099 reporting, including letters to Senator Max Baucus and Senator Mike Johanns.

 

ARLINGTON, VA – The dairy industry is committed to providing safe and wholesome milk to consumers. The nation’s 55,000 dairy farmers have a strong track record of compliance with state and federal regulations, and support education and enforcement efforts to further strengthen that record.

It’s important to clarify that the dairy industry is cooperating with the U.S. Food and Drug Administration (FDA). We are pleased that the agency recently agreed to take additional time to collect input and review the proposed scope and methodology of the testing plan.

FDA has repeatedly expressed its confidence in the safety of the U.S. milk supply, stating, “Efforts such as this sampling assignment will ensure that any problem that may exist remains minor and is quickly mitigated by education and enforcement, as appropriate. FDA is targeting the few members (tissue residue violators) of an otherwise compliant industry in order to ensure that the public can have the utmost confidence in the dairy products they consume.”

The U.S. milk industry has an exemplary record concerning management of antibiotics. Under a comprehensive program administered by the state regulatory authorities and overseen by FDA, the U.S. dairy industry conducts nearly 4 million tests each year to ensure that antibiotics are kept out of the milk supply. For example in 2009, only .028% tested positive, and in those very rare cases, the milk is not sold to the public.

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.

Visit our Animal Drug Information webpage for additional FDA resources concerning this issue.

 

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) submitted comments to the House Committee on Ways and Means regarding a hearing held today on the pending Free Trade Agreements (FTAs) with Colombia, Panama and South Korea. The focus of the hearing was to examine the job creating potential of the three trade agreements.

NMPF and USDEC voiced support for all three FTAs and urged swift congressional passage of each. However, remarks from NMPF and USDEC centered heavily on the tremendous export potential posed by the Korea-U.S. FTA.

“The anticipated growth in our exports of cheese, whey, skim milk powder, and other dairy products will help bolster milk prices for America’s dairy farms, and help to support additional jobs in the dairy processing and transportation sectors,” said Jerry Kozak, President and CEO of NMPF. “In fact, we estimate that such an increase in U.S. dairy exports would mean as many as 10,000 additional U.S. jobs, on and off the farm.

Tom Suber, president of USDEC concurred, adding, “The Korea–U.S. Free Trade Agreement will provide the best opportunity to expand U.S. dairy exports since the U.S.–Mexico portion of the North American Free Trade Agreement. Our industry is very eager to take advantage of this opportunity, particularly considering the speed with which Korea has negotiated FTAs with other major dairy exporters such as the European Union.”

The dairy organizations also expressed hope that the FTAs with Colombia and Panama would also be approved, citing the anticipated $50 million annual average increase in net benefits to the U.S. dairy industry upon passage of both trade agreements. NMPF and USDEC stressed that the estimates pertaining to the FTAs assume the United States is able to make full use of the new market access opportunities negotiated for in each of these agreements.

“We urge Congress to move without any further delay to approve the Korea-U.S. FTA that is so economically meaningful for the dairy industry, as well as other sectors of our economy,” said Kozak. “We also would like to see the Panama and Colombia FTAs advanced to Congress at the earliest opportunity given the benefits that these agreements would also offer to an industry that sorely needs all the expanded market opportunities we can capture.”

The U.S. Dairy Export Council (USDEC) is a non-profit, independent membership organization that represents the export trade interest of U.S. milk producers, proprietary processors, dairy cooperatives, and export traders. Its mission is to enhance international demand for U.S. dairy products and assist the industry to increase the volume and value of exports. USDEC accomplishes this through market development programs that build overseas demand for U.S. dairy products, resolving market access barriers and advancing the industry’s trade policy goals. USDEC activities are supported by staff in Mexico, Japan, South Korea, China, Taiwan, Hong Kong, Southeast Asia, South America, Middle East and Europe. Website: www.usdec.org.

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.

ARLINGTON, VA – This week the National Milk Producers Federation (NMPF) welcomed a new staff member to its ranks with the addition of Jonathon Glueck, who will serve as the Manager of Government Relations.

In his new role at NMPF, Glueck will join Senior Vice President Dana Brooks and Director David Hickey in the Government Relations department. He will be assisting NMPF staff on a number of issues, including immigration, farm policy and trade, and management of NMPF’s Political Action Committee. Glueck will specifically be responsible for legislative issues regarding animal welfare and care.

A native of the Texas panhandle who grew up involved in the dairy industry, Glueck earned a B.A. in Agricultural Economics and Agricultural Leadership Development from Texas A&M University. After a short stint serving as an agricultural advisor to the military in Iraq, he most recently served as the Agriculture Legislative Assistant for Congressman Chet Edwards (TX).

Glueck’s first day at NMPF was this past Monday, January 10. He can be reached at jglueck@nmpf.org.

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) today welcomed the release by the Department of Transportation of an “initial concept document” intended to allow for a long–haul, cross-border Mexican trucking program that prioritizes safety, while complying with the U.S. trade obligations to Mexico under the North American Free Trade Agreement (NAFTA). The concept document is aimed at rectifying a trade spat between the two countries that is hurting the U.S. dairy sector, among others.

 

In response to long-standing lack of U.S. compliance with its trucking obligations to Mexico under NAFTA, Mexico has been legally levying tariffs on a variety of U.S. exports since March 2009. Since August 2010, that retaliation list has included many U.S. cheeses.

“We see this announcement as a positive first step towards resolution of this long-running dispute,” said Tom Suber, USDEC president. “Since August, exports of the targeted cheeses to Mexico have plunged by 66% through November of last year. It is good that the United States recognized the heavy toll that retaliation is having on the many impacted sectors, such as America’s dairy industry, and has proposed to begin to move forward with working with Mexico to find a way to address this issue.”

Jerry Kozak, President and CEO of NMPF, concurred, adding, “Mexico is by far our largest export market and therefore absorbs sizable quantities of the milk U.S. dairy farmers produce. It is encouraging to see the U.S. initiate a path towards a permanent resolution of this transportation issue that has been negatively impacting the dairy industry, which has been caught in the resulting cross-fire of this dispute.”

NMPF and USDEC stressed the importance of the U.S. and Mexico governments working together from this starting point to craft a mutually agreeable final resolution to this issue, one that complies with U.S. trade commitments in order to avoid future upheavals. The organizations urged members of Congress to support this process and approve any resulting proposal from the negotiations between the U.S. and Mexican governments.

The U.S. Dairy Export Council (USDEC) is a non-profit, independent membership organization that represents the export trade interest of U.S. milk producers, proprietary processors, dairy cooperatives, and export traders. Its mission is to enhance international demand for U.S. dairy products and assist the industry to increase the volume and value of exports. USDEC accomplishes this through market development programs that build overseas demand for U.S. dairy products, resolving market access barriers and advancing the industry’s trade policy goals. USDEC activities are supported by staff in Mexico, Japan, South Korea, China, Taiwan, Hong Kong, Southeast Asia, South America, Middle East and Europe. Website: www.usdec.org.

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.