Uncategorized

New Staff Member Bolsters NMPF’s Efforts on Capitol Hill

Posted on by dcadmin

NMPF welcomed a new staff member to its ranks last month 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).

 

NMPF Celebrates 95th Anniversary Serving Dairy Producer Community

Posted on by dcadmin

In 2011, NMPF will celebrate its 95th birthday being the voice on Capitol Hill for dairy farmers and the cooperatives they own. Established in 1916, NMPF has come a long way since its early years, providing a forum through which policy can be formulated on national issues that affect milk production and marketing. NMPF’s contribution to this policy has been aimed at improving the economic interests of dairy farmers, thus assuring the nation’s consumers an adequate supply of pure, wholesome milk and dairy products. NMPF thanks its cooperatives and their dairy farmer members for their ongoing support and encouragement and looks forward to serving them in the 21st century.

 

Senate Repeals 1099 Tax Reporting Law

Posted on by dcadmin

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.

The Writing on the Wall

Posted on by dcadmin
The huge state dinner at the White House with Chinese president Hu Jintao on January 19th was a milestone in 40 years of ongoing U.S. negotiations with China, a process started by Richard Nixon in the early 1970s after he visited Beijing. That visit gave rise to a well-worn saying, “Nixon goes to China,” which has become shorthand for how prominent leaders holding opposing philosophies can work to find common ground.

Ironically, the morning after the White House dinner, there was another “Nixon goes to China” moment, only this time, it involved the First Lady, along with an institution perhaps even more powerful than China: Wal-Mart. Michelle Obama appeared on January 20th with top Wal-Mart executives to endorse the retailing behemoth’s five-year plan to reduce sodium, fat and sugar in many of its food offerings.

The significance of this announcement is that it’s the first time Mrs. Obama – whose signature issue is healthier lifestyles, achieved through better eating and exercising habits – has lent her support behind the goals of a particular company. And, of course, it happens to be the biggest retail company in the country. Wal-Mart is a sextant for the entire consumer marketing chain.

This development happened, just coincidentally, a week after the U.S. Department of Agriculture announced a new set of proposed guidelines for the foods served in the school lunch line. As has already been widely reported, these guidelines portend big changes for what school-aged kids may be served, starting in the 2012 school year. Any milk with a fat content higher than 1 percent is out. Flavored milk with any fat is also out. So while the good news is that the USDA is not instituting a blanket ban on chocolate milk, as some had advocated, any flavored milk, chocolate or otherwise, must be fat-free.

The truth is, this development is just more writing on the wall about where both the government and the private sector are going with respect to food formulations and the types of menu items offered. More than 75% of the white milk, and 90% of flavored milk served in schools, is already 1% or less. Over one-third of school districts already are serving fat-free flavored milk, while a few have banned flavored milk entirely.

The dairy industry needs a two-pronged approach in response to the USDA proposal: first, we have to seek assurances that reformulating flavored milks to either reduce sugar, or eliminate fat, doesn’t result in a decrease in overall consumption. In some school districts where chocolate milk has already been dropped from school meals, there are reports of significant drop-offs in total milk consumption. More research is needed to dig into that prospective reaction on the part of students.

While the goal of getting the healthiest-possible products in schools is, on paper, a laudable one, the paramount goal of the government should be ensuring that the foods kids actually eat – as opposed to those they are offered but choose not to consume – provide them with the proper nutrition. Or, as Wal-Mart executive Leslie Dach told the New York Times in explaining why Wal-Mart is giving consumers a five-year adjustment period as reformulated products are introduced: “It doesn’t do you any good to have healthy food if people don’t eat it.”

The second prong of the response is that dairy processors have to rise to the challenge of formulating their school offerings in ways that will comply with these regulations. There’s already been a great deal of work done to fiddle with sugar and flavor intensities to make chocolate milk as “healthy” as possible. More work in that regard will be needed as the USDA proceeds down this path. This may include using non-nutritive imitation sweeteners, a position that NMPF endorses as a way to minimize added sugars, which are also being targeted by some schools.

At the end of the day, the USDA probably doesn’t need to issue a single new dietary recommendation or regulation on ways to reduce sugar, fat and sodium from people’s diets, if Michelle Obama continues to team up with Wal-Mart and other food processors and vendors to push changes throughout the food chain. The trends are clear; it’s up to affected parties, like the dairy sector, to make the necessary adjustments in order to continue to sell our products. We landed men on the moon; we should be capable of reformulating our products to meet nutritional trends as they wax and wane.

 

Dairy Industry Statement on Supplemental Antibiotic Residue Testing

Posted on by dcadmin

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.

NMPF Statement Regarding IDFA-Sponsored Informa Economics Study

Posted on by dcadmin

MIAMI, FL – While attending the International Dairy Foods Association (IDFA) 2011 Dairy Forum here this week, NMPF President & CEO Jerry Kozak issued this statement in response to the newly-released Informa Economics study that IDFA sponsored:

“Dairy farmers in every state saw their collective milk income drop more than ten billion dollars in 2009, which doesn’t even include billions more in lost equity.

“This catastrophe was the result of current dairy policy that doesn’t offer farmers of any size, in any state, the protections they need against catastrophic financial losses. NMPF’s Foundation for the Future has been carefully designed to offer protection for their hard-earned equity.

“While providing all farmers in all regions a better safety net, Foundation for the Future also discourages periodic marketplace imbalances that generate enormous volatility, hurting all dairy 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 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.

 

Dairy Groups Urge Passage of Three FTAs to Grow Jobs in the USA

Posted on by dcadmin

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.

New Staff Member Bolsters NMPF’s Efforts on Capitol Hill

Posted on by dcadmin

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.

Dairy Groups Welcome U.S. Government’s First Step Towards Resolution on NAFTA Trucking Dispute

Posted on by dcadmin

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.

111th Congress Comes to a Close; New Congress Begins This Week

Posted on by dcadmin

The final month of the 111th Congress witnessed a flurry of last-minute activity, which included estate tax reform, a major reauthorization of the school lunch program, and landmark food safety legislation. As part of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, Congress set the estate tax exemption level at $5 million ($10 million for couples), and the rate at 35 percent.

This development is vital for many of the nation’s farmers and ranchers, as the exemption level and rate were to reset at $1 million and 55 percent, respectively, in 2011. Congress also successfully passed a major child nutrition law to increase funding for the school lunch program and allow for nutritional standards to be set for all foods sold in schools, while also clearly recognizing the vital importance of milk consumption for our nation’s youth. Furthermore, Congress sent the FDA Food Safety Modernization Act to the President’s desk, marking the first significant reform since 1938 of the Food and Drug Administration’s oversight of the food supply. President Obama signed it Tuesday.

There were also a few key issues that were not tackled before the 111th Congress concluded. Even though there was a late push by the Administration and several key Congressional leaders, immigration reform was stopped short by procedural hurdles. Legislation to repeal 1099 tax provisions also fell a few votes short, leaving many farmers and ranchers vulnerable to new, burdensome tax filing requirements.

On Wednesday this week, Ohio Congressman John Boehner was sworn in at the new Speaker of the House, signaling the start of the 112th legislative session. NMPF will continue its efforts in the coming months to work with leaders in both parties to implement new dairy policy.

 

CWT Settles Lawsuit over Disposition of Cattle in Herd Retirement Program

Posted on by dcadmin

Cooperatives Working Together (CWT) announced before the holidays that it had successfully reached an out-of-court settlement with the defendants in the civil action entitled Kessler v. Greenville Livestock, Inc., which was filed in the Circuit Court for St. Clair County, Illinois on September 1, 2010.

The National Milk Producers Federation (NMPF), which manages CWT, had joined with Illinois dairy farmer Kevin Kessler, and Kessler Dairy Inc., as a plaintiff in the action. The dispute involved transactions related to CWT’s herd retirement program.

By agreement with defendants, the terms of the settlement will not be disclosed. However, all parties are satisfied that the settlement resolves the case fairly. Jerry Kozak, NMPF President and CEO, said: “We have always fully investigated every report involving allegations about the proper operation of Cooperatives Working Together, and we felt, in this situation, that we needed to take legal action. The settlement agreement we have made with the defendants preserves the integrity of the CWT program and protects dairy farmers’ investment in CWT.”

 

Pollution Diet Set for Chesapeake Bay

Posted on by dcadmin

Before the close of 2010, the Environmental Protection Agency (EPA) released its final plans for cleaning up the Chesapeake Bay. Known as a total maximum daily load (TMDL), EPA set a “pollution diet” for the Chesapeake Bay Watershed, a 64,000-square-mile region covering Delaware, Maryland, New York, Pennsylvania, Virginia, West Virginia, and the District of Columbia.

The plan requires the six Bay states and D.C. to implement plans that will lead to a reduction in the flow of certain nutrients – nitrogen, phosphorus, and sediment – into the Bay by 20 to 25 percent by 2025, with 60 percent of that goal to be met by 2017. In order to meet these goals, each jurisdiction must chart out a course of how they will meet the reductions prescribed by the EPA. After being rejected initially, these plans were ultimately approved by the EPA, with the exception of a few sectors.

In order to aid farmers in meeting these rigorous goals, several of these plans provide additional funding for agricultural programs, and new assistance for the development and implementation of manure-to-energy projects. Unfortunately, there are serious concerns with many aspects of these final plans, including a potential scenario where farmers may be faced with mandatory programs if goals aren’t realized, which could come as soon as 2013. There were a few instances where the EPA did not approve aspects of a submitted plan. In one instance, EPA crafted a targeted backstop for the agriculture sector in West Virginia. The federal agency also plans to apply additional oversight on Pennsylvania farmers.