House Ag Committee Announces New Member Roster

Republican Chairman Frank Lucas (OK) and Democrat Ranking Member Collin Peterson (MN) recently released the member list of the 112th House Agriculture Committee. The members of the House who will serve on the committee are as follows:

Republicans Democrats
OK-3     Frank D. Lucas MN-7     Collin Peterson
VA-6     Bob Goodlatte PA-17    Tim Holden
IL-15     Tim Johnson NC-7      Mike McIntyre
IA-5      Steve King IA-3        Leonard Boswell
TX-19    Randy Neugebauer CA-43     Joe Baca
TX-11    Michael Conaway CA-18     Dennis Cardoza
NE-1     Jeff Fortenberry GA-13     David Scott
OH-2     Jean Schmidt TX-28      Henry Cuellar
PA-5     Glenn Thompson CA-20     Jim Costa
FL-16     Tom Rooney MN-1      Timothy Walz
AR-1      Rick Crawford OR-5       Kurt Schrader
TN-4      Scott DesJarlais NC-8       Larry Kissell
NC-2      Renee Ellmers NY-23      Bill Owens
TN-8       Stephen Fincher ME-1       Chellie Pingree
OH-18     Bob Gibbs CT-2        Joe Courtney
NY-20     Chris Gibson VT-At Large     Peter Welch
MO-4      Vicky Hartzler OH-11      Marcia Fudge
KS-1      Tim Huelskamp NMI-Delegate   Gregorio Sablan
IL-14       Randy Hultgren AL-7        Terri Sewell
WI-8       Reid Ribble MA-3       James McGovern
AL-2       Martha Roby
IL-17       Bobby Schilling
GA-8       Austin Scott
FL-2       Steve Southerland
IN-3        Marlin Stutzman
CO-3       Scott Tipton

The Livestock, Dairy and Poultry Subcommittee will be chaired by Rep. Tom Rooney (FL) with Ranking Member Rep. Dennis Cardoza (CA). John Goldberg (Majority) and Mary Knigge (Minority) will be the committee staffers assigned to this subcommittee.

Of the 46 Republicans and Democrats on the Committee, 26 are new to the committee, and of those 26, 17 are freshman members. This is a great opportunity for new member education. NMPF looks forward to working with all members of the committee in the future.

 

Obama Discusses Reforming the Regulatory Process

In an op-ed column published Jan. 18th in the Wall Street Journal (WSJ), President Obama laid out a directive to his administration to examine the system of regulatory actions and the impact it has had on the nation’s economy. According to the column, his plan “requires that federal agencies ensure that regulations protect our safety, health and environment while promoting economic growth. And it orders a government-wide review of the rules already on the books to remove outdated regulations that stifle job creation and make our economy less competitive.” Along with the WSJ piece, the President also released an executive order and two memos further laying out his new strategy.

As committee rosters for the House of Representatives are being finalized, the new GOP chairmen have already started their hearings to investigate the regulatory system of the Obama Administration. Over the coming weeks, expect to see a variety of Cabinet members making visits to Capitol Hill, including Environmental Protection Agency (EPA) Administrator Lisa Jackson, Secretary of Agriculture Tom Vilsack, and Secretary of Health and Human Services Kathleen Sebelius, just to name a few.

Meanwhile, Senators are assembling their lists of current regulations harming their constituencies. Sen. Saxby Chambliss (R-Ga.), joined by incoming Senate Agriculture Committee Ranking Member Pat Roberts (R-Kan.), sent a letter to Office of Information and Regulatory Affairs Administrator Cass Sunstein listing out many of the destructive regulations in place, or in the works, at USDA and EPA. These include: Clean Air Act initiatives, Clean Water Act strategies and rulemakings, GIPSA changes, and biotechnology decisions, amongst many others.

NMPF staff will be working closely with the Administration and Congress to identify the troublesome regulations and work to find solutions for improvement or elimination.

 

Dairy Groups Urge Passage of Three FTAs to Grow Jobs in U.S.

NMPF and the U.S. Dairy Export Council (USDEC) submitted comments to the House Committee on Ways and Means as part of a hearing held last month 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.

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.

 

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

At the beginning of the new year, NMPF and the U.S. Dairy Export Council (USDEC) welcomed the Department of Transportation’s release 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 Joins Alliance to Promote Agriculture

As part of an effort to fund programs that will bolster the image of agriculture and enhance public trust in the U.S. food supply, NMPF has joined more than 20 other farmer- and rancher-led organizations to become part of the U.S. Farmers and Ranchers Alliance (USFRA). Together these organizations represent nearly all aspects of agriculture. NMPF’s Chris Galen was elected to serve on the Board of Directors of the Alliance.

Founded in October of last year, the USFRA aims to enhance consumer trust in the U.S. food production system, maintain and enhance the freedom of U.S. farmers and ranchers to operate in a responsible manner, and strengthen collaboration. The members of USFRA plan to work together to augment U.S. consumer trust in modern food production to ensure the abundance of affordable, safe food.

Learn more about the USFRA online at www.usfraonline.org.

 

New Staff Member Bolsters NMPF’s Efforts on Capitol Hill

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

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

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

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

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

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

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.