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NMPF Thanks House Agriculture Committee for Farm Bill Progress and Key Dairy Wins

Posted on by Theresa Sweeney

The National Milk Producers Federation thanked members of the House Agriculture Committee for their work to advance a 2024 Farm Bill through Congress this year, with bipartisan approval for a plan introduced by Chairman Glenn “GT” Thompson that includes numerous provisions important to dairy farmers and the cooperatives they own.

“We commend Chairman Thompson and committee members from both parties for approving a 2024 House Farm Bill that includes critical dairy priorities that will help support and grow this industry,” said Gregg Doud, president and CEO of NMPF. “We will do whatever we can to work with lawmakers in both chambers on a bipartisan basis to pass a new law as soon as possible, knowing that dairy is well-served by what the House Agriculture Committee approved today.”

Provisions benefiting dairy urged by NMPF are found across the bill’s titles, including ones that:

  • Extend the Dairy Margin Coverage (DMC) program through 2029; update production history for participating dairies to be based on the highest production year of 2021, 2022, or 2023; and extend the ability for producers to receive a 25% premium discount for locking five years of coverage;
  • Restore the “higher of” Class I mover to reinstate orderly milk marketing and require plant cost studies every two years to provide better data to inform future make allowance conversations, two key components of NMPF’s Federal Milk Marketing Order modernization proposal;
  • Support the bipartisan, House-passed Whole Milk for Healthy Kids Act to reverse the underconsumption of nutritious milk in our schools;
  • Boost funding for critical dairy trade promotion programs and protect the use of common food names worldwide;
  • Support voluntary, producer-led conservation programs, such as the Environmental Quality Incentives Program, with dedicated funds for livestock operations and language encouraging states to prioritize methane-reducing practices;
  • Improve the certification of Third-Party Service Providers with technical expertise related to conservation planning to better assist producers participating in National Resources Conservation Service (NRCS) programs;
  • Continue the Farm and Ranch Stress Assistance Network; and
  • Increase funding for animal health initiatives and programs.

Other provisions relevant to dairy include:

  • Increasing the DMC Program Tier 1 volume threshold from five million pounds to six million pounds;
  • Extending the Dairy Forward Pricing Program, the Dairy Indemnity Program, and the Dairy Promotion and Research Program;
  • Directing USDA to collect and publish cost-of-production data for organic milk;
  • Raising EQIP conservation funding from $2.4 billion in fiscal year 2025 to $3.25 billion in fiscal year 2029;
  • Requiring USDA to create a public process for updating conservation practice standards every five years; and
  • Requiring USDA to report to Congress on the department’s preparedness to support livestock and poultry growers facing economic losses in the event of an outbreak of a foreign animal disease.

House Ag Committee Tackles Farm Bill; NMPF’s Bleiberg Outlines What’s in It

Posted on by Chris Galen

NMPF’s Executive Vice President Paul Bleiberg explains for listeners of Dairy Radio Now what’s in the Farm Bill draft for dairy farmers as the House Agriculture Committee votes on May 23. Bleiberg describes how the measure handles the economic safety net for farmers, and assesses the prospects for the farm bill measure after this spring on Capitol Hill.

Farm Bill Frameworks Share Common Ground

Posted on by Alan Bjerga

By Paul Bleiberg

Executive Vice President, Government Relations, National Milk Producers Federation

After two years of hearings, listening sessions, and discussions, members of Congress are now making 2024 Farm Bill proposals. House Agriculture Committee Chairman GT Thompson, R-PA, and Senate Agriculture Committee Chairwoman Debbie Stabenow, D-MI, both began the month by releasing their initial farm bill framework documents and priorities.

Even a quick glance at them shows the two proposals have real differences. But they also share many similarities — and that’s especially true for dairy.

Dairy farmers continue to support the Dairy Margin Coverage program enacted in the 2018 Farm Bill. It has performed effectively for producers during challenging periods, and it’s a vast improvement over its predecessors. Both farm bill frameworks extend the program, including its discount option for those farmers who lock in coverage for five years. Just as important is an update to the program’s production history calculation to compensate producers based on more recent milk production. This is an area of common ground that builds on last year’s one-year farm bill extension.

Both proposals also have overlap in their natural resource programs, recognizing that voluntary, producer-led conservation programs are effective but oversubscribed. In that context, both committee chairs recommend using the new conservation funds enacted in the Inflation Reduction Act of 2022 to build baseline, ensuring these greater resources will remain available for years to come. Common ground also exists when it comes to maintaining the 50% of funding for livestock set aside with the Environmental Quality Incentives Program, which will allow dairy farmers to continue their ongoing sustainability work.

Looking overseas, both chambers include valuable provisions to counter harmful trade barriers by establishing a robust new process for safeguarding common food and beverage names in international markets. Both the House and Senate plans provide additional resources for animal health programs that protect farmers from animal diseases, a matter that’s gained urgency with the current U.S. H5N1 outbreak in dairy cattle. Finally, both bills continue the enduring connection between agriculture and nutrition, forgoing misguided proposals to separate the producer safety net from essential nutrition programs that are a key lifeline to families and households nationwide.

Each farm bill is unique, and so are the roads taken to complete them. But the House and Senate Agriculture Committee chairs have both taken vital first steps, and we are also pleased that Senate Agriculture Committee Ranking Member John Boozman, R-AR, plans to release his farm bill framework in short order. These proposals all pave the way for the work that will need to be done to arrive at one bipartisan, bicameral measure that can be signed into law. Dairy stands ready, as always, to be a force for common ground to help get the job done.

This column originally appeared in Hoard’s Dairyman Intel on May 20, 2024.

NMPF Awarded USDA Grants to Advance Dairy Industry Disease Preparedness

Posted on by Rachel Ravencraft

The National Milk Producers Federation (NMPF) today was awarded funding from the U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service National Animal Disease Preparedness and Response Program (NADPRP) supporting two projects advancing dairy cattle disease preparedness.   

The first award will expand on USDA funding NMPF received in 2021 to build the National Dairy Farmers Assuring Responsible Management (FARM)Biosecurity Program. FARM Biosecurity provides dairy farmers with the tools to protect the health of their herds and employees from everyday and foreign animal diseases. Biosecurity resources developed from the initial 2021 USDA funding are currently being used to respond to the H5N1 animal health issue.  This new funding will expand educational resources and training opportunities for producers, cooperatives, state animal health officials and FARM Program evaluators; update the Secure Milk Supply Plan guidance and further develop the capabilities of the FARM Biosecurity database. 

The second award will bring together stakeholders including dairy cooperatives, milk haulers, milk testing labs, state and federal animal health officials and National Animal Health Laboratory Network (NAHLN) lab directors to conduct a gap analysis and create a report outlining current capabilities and guidance for industry and policymakers to implement a foot-and-mouth disease diagnostic assay using bulk tank milk samples to provide herd-level disease surveillance in the event of an outbreak. 

“USDA funding for continued enhancement of biosecurity on dairy farms for emerging and foreign animal diseases arrives at a time when the dairy industry is already using USDA-funded resources to address the challenges of H5N1,” Gregg Doud, president and CEO of NMPF, said. “This ongoing collaboration between USDA and NMPF is building resiliency for the U.S. dairy industry now and for the future.” 

The grants are funded by the 2018 Farm Bill as part of an overall strategy to help prevent animal pests and diseases from entering the United States and reduce the spread and impact of potential disease incursions through advance planning and preparedness. USDA has funded the NADPRP projects with the goal of individually and collectively addressing critical livestock biosecurity, large-scale depopulation and carcass disposal concerns in all major livestock industries across all U.S. regions. NMPF will apply the grant funding to advance biosecurity and diagnostic testing capabilities to support animal health on dairy farms by partnering with stakeholders and experts, including dairy farmers, veterinarians, dairy cooperatives and processors, NAHLN laboratories, Preventalytics LLC, and state and federal animal health officials. 

Study Reveals Reasons Why Some Americans Lack Adequate Dairy Nutrition, Offers Roadmap to Better Diet Quality

Posted on by Theresa Sweeney

Many Americans recognize dairy as a cornerstone of a healthy diet but continue to fall short of recommended daily intake as endorsed by the Dietary Guidelines for Americans. An in-depth consumer survey released today by the International Food Information Council (IFIC) and supported by the International Dairy Foods Association (IDFA) and the National Milk Producers Federation (NMPF), explores barriers to dairy nutrition among Americans and how to remove them.

The report provides a roadmap for how industry, government, and health and nutrition groups can improve awareness of and access to lactose-free milk and dairy products; expand understanding about dairy’s nutritional value; and work with the dairy industry to extend shelf life and improve the value of dairy purchases to consumers.

The report draws on the beliefs, behaviors, and perceptions of Black, Latino, Asian/Pacific Islander, and Non-Hispanic White consumers toward dairy.

Key Data Points:

  • Missed Opportunities for Lactose-Free: Nearly two in three Americans say they’ve never consumed lactose-free milk (64%), lactose-free flavored milk (76%), or other lactose-free dairy products other than milk (68%). The rate of non-consumption is more than half among Latino, Black, and Asian/Pacific Islander communities, indicating low awareness among groups that report higher rates of lactose sensitivity.
  • Affordability a Leading Factor for SNAP and Non-SNAP Households Alike: Approximately 30% of all races and ethnicities at all income levels cite affordability as a reason for consuming milk.
  • Expiration Dates and “Passive Avoidance” Top Barriers: Concern about spoilage before it’s used (19%), is a leading reason consumers avoid milk. Meanwhile, 37% of respondents cited no specific reason for limiting dairy consumption, suggesting “passive avoidance” that could be overcome with greater media, healthcare, and community outreach. Self-reported lactose sensitivities also contribute to higher levels of avoidance.
  • Taste and Health Top Purchase Drivers, Cheese Reigns Supreme: Cheese is the most frequently consumed dairy product (90% weekly), followed by butter (85%), milk (75%), and yogurt (60%). Consumers overwhelmingly rank taste as the main factor for purchasing cheese, yogurt, and milk, followed by dairy being a good source of protein. Health benefits cited include bone health as the most recognized (90%), and other advantages including immune system support (65%) and heart health (54%).

Spotlighting a Disconnect Between Perception and Consumption

The “Exploring Fluid Milk & Dairy Food Consumption Patterns to Improve Diet Quality & Nutrition Equity” study reveals a disconnect between consumer perception and actual dairy intake. While a strong majority (78%) of Americans believe dairy is essential, many are not reaping its benefits.

“Good nutrition is the foundation of health and wellness for adults and children across all demographics, and dairy is a crucial part of a healthy diet beginning at a very young age,” said Michelle Matto, MPH, RDN, associate vice president of regulatory affairs and nutrition, IDFA. “This survey shows how consumers value dairy for nutrition and taste but may lack adequate information about or access to the types of dairy that are right for them and their families. It demonstrates that dairy will need to expand its partnerships with communities of color, with health and nutrition experts, and with policymakers to remove barriers preventing Americans from getting adequate dairy nutrition, including high quality protein, calcium, vitamin D, potassium, and health benefits including better bone health and lower risk for type 2 diabetes and cardiovascular disease.”

Moving Forward

The survey shows the clear need for greater educational efforts, said Miquela Hanselman, director of regulatory affairs for NMPF.

“The IFIC research puts data behind both the importance of dairy nutrition and the need for better education about what dairy options are available and what benefits they provide,” Hanselman said. “With discussion of the next Dietary Guidelines under way, it’s important that this information be communicated clearly and forcefully to all who may benefit, from consumers who need dairy nutrition to policymakers who determine federal programs.”

The IFIC research underscores the importance of targeted outreach programs to improve overall diet quality and achieve greater nutrition equity.

“While dairy is a chronically under consumed food group among many Americans, BIPOC and SNAP-eligible households may benefit most from hearing more about the health benefits associated with consistent dairy consumption. Education and outreach efforts tailored to increase awareness and availability of lactose-free dairy foods and beverages, in addition to emphasizing dairy’s benefits beyond bone health for everyone, present new opportunities,” said IFIC President & CEO Wendy Reinhardt Kapsak, MS, RDN. “Increased dairy consumption among all populations can positively contribute to improved diet quality and nutrition equity — availability, accessible, and affordability — goals that support enhanced health for all Americans.”

FMMO Formulas Need to Reflect Today’s Realities

Posted on by Theresa Sweeney

Way back in the 1930s, one of the original motivations behind creating the Federal Milk Marketing Order system was to provide incentives for farmers to produce better milk. Much of the milk at the time was Grade B, which was lower quality than the Grade A milk earmarked for fluid consumption. To ensure an adequate supply of higher-quality milk, the FMMO system set up pricing that encouraged its production.

It worked. U.S. milk production is now almost entirely Grade A – even for uses in which Grade B is permissible, such as in certain manufactured dairy products. And in the past quarter century, better animal care, and better science and technology, has improved milk even more in terms of its nutrition, its quality and its premium-value components. For one example – take a look at how the percentage of protein in 100 pounds of milk has evolved since 2000.

Impressive. And just like in the 1930s, it has to do with incentives. The adoption of multiple component pricing in 2000 paid farmers for the protein content in most of their milk, just as they had long been paid for its milkfat content.

That’s the good news. But the bad news is that in many other ways, federal order pricing formulas that often haven’t changed since 2000 don’t reflect the structure of today’s dairy industry. And that disrupts those incentives, to the detriment of everyone who holds a stake in dairy’s success.

For example, Class I differentials – designed to ensure that processors receive an adequate supply of fresh milk to produce fluid milk products – haven’t been updated nationwide since 2000. Make allowances in the federal order product price formulas – which are supposed to cover the cost of converting raw milk components into finished products – have also gone a generation without adjustment, hindering processors that farmers need to thrive.

Simply put, dairy as an industry can’t thrive without adequate updates to federal formulas. So hooray for protein. But many current formulas still don’t work for farmers and the cooperatives they own. The improved quality and availability of American milk comes from farmers’ hard work. And good work should be rewarded.

NMPF Statement on H5N1 Federal Aid to Assist Dairy Farmers

Posted on by Theresa Sweeney

From NMPF President & CEO Gregg Doud:

“NMPF thanks Secretary Vilsack and federal leadership for effectively using their existing authorities to offer necessary assistance for dairy farmers as they meet the challenges of H5N1 in dairy cattle. Care for farm workers and animals is critical for milk producers, as is protecting against potential human health risks and reassuring the public.

“We look forward to continued collaboration and consultation with USDA and other federal agencies as we monitor, understand, and contain this outbreak, and we will do what we can to help dairy farmers understand and benefit from these initiatives as swift implementation is put into motion.”

NMPF Statement on “Higher-of” Inclusion in the House Farm Bill

Posted on by Rachel Ravencraft

From NMPF President & CEO Gregg Doud:

“We commend House Agriculture Committee Chairman Glenn ‘GT’ Thompson, R-PA, for including language in the House farm bill to restore the previous “higher of” Class I mover formula. The previous mover served dairy farmers well for decades, while the current mover has cost dairy farmers more than $1 billion in Class I skim milk revenue and continuously undermines orderly marketing of milk.

“We also are grateful for the inclusion of language to require mandatory manufacturing plant cost studies to help inform future discussions on make allowances, another critical component of the Federal Milk Marketing Order system. We are excited for the House’s upcoming farm bill markup and thank the members in both parties who have supported each of these priorities.”

NMPF’s Galen Explains Latest Development in Farm Bill Process in Congress

Posted on by Chris Galen

NMPF’s Senior Vice President Chris Galen explains for listeners of Dairy Radio Now how the House and Senate agriculture committees are each now seeking to advance their respective versions of the 2024 Farm Bill.  Galen describes how the measures may affect dairy policy, and what the next steps are for lawmakers this spring on Capitol Hill.

 

U.S. and Mexico Dairy Industries Renew Commitment to Cross-Border Cooperation

Posted on by Theresa Sweeney

Leading dairy representatives from the United States and Mexico met this week in Chihuahua, Mexico to renew their commitment to collaborate and advocate on mutually beneficial dairy policies. This was the sixth meeting between leading U.S. and Mexico dairy organizations since 2016.

The U.S. Dairy Export Council (USDEC) and National Milk Producers Federation (NMPF) steered the U.S. delegation, which consisted of more than 14 member companies, U.S. farmer representatives, and USDEC and NMPF staff. Delegates from Mexico’s milk producers and dairy processors included:

  • Confederación Nacional de Organizaciones Ganaderas (National Organization of Livestock Organizations)
  • Asociación Mexicana de Productores de Leche (Mexican Association of Milk Producers)
  • Gremio de Productores Lecheros de Mexico (Mexican Dairy Producers Guild)
  • Cámara Nacional de Industriales de la Leche (National Chamber of Milk Industries)
  • Consejo Nacional Agropecuario (National Agricultural Council).

Throughout the week, attendees discussed the most pressing issues affecting both industries, in their local respective markets and across the globe.

“Our two industries share so many similar challenges that call for us to work together,” said Krysta Harden, president and CEO of USDEC. “Mexico is and will continue to be a valuable partner for U.S. dairy. These meetings help strengthen those ties and set the dairy sectors in both countries up for continued success.”

“The U.S. and Mexico dairy industries are key partners in their shared mission to grow demand and protect dairy’s public image,” said Gregg Doud, president and CEO of NMPF. “The renewed commitment signed today further strengthens our important relationship.”

As part of the meeting, attendees toured the Reny Picot Mexico plant in Chihuahua. The only demineralized whey powder producer in Mexico, Reny Picot is the largest nonfat dry milk powder importer in Mexico, importing an average of 5,000 metric tons per month.

Joint Statement:

On their Sixth annual meeting within the framework of the partnership to strengthen the milk production sector in North America, held in the city of Chihuahua, Mexico, hereby agree to:

  1. Preserve, facilitate, and improve trade between the two
  2. Preserve this forum for discussion and analysis of relevant topics and issues of the milk and dairy producing sectors of Mexico and the United States.
  3. Have as a key objective the growth of dairy consumption in both countries for the benefit of producers, manufacturers and consumers in the United States and Mexico.
  4. Promote joint activities seeking to increase the consumption of dairy products within our
  5. Identify and promote actions that improve the productivity of dairy farms in Mexico and the United States.
  6. Strengthen the image of milk and dairy products in both countries to defend against the misuse of milk and dairy product names by other products of non-dairy origin.
  7. Maintain an open communication channel between the milk and dairy producer organizations of both countries, with the aim of reaching consensus for the benefit of our Likewise, exchange information and successful experiences through the participation of members of both countries in forums and congresses organized by our associations.
  8. Work on strengthening cooperation in technological exchange and training, both in terms of on-farm milk production and in improving the quality and safety of milk and dairy products from a nutritional and health standpoint.
  9. Work to share information on key new areas such as sustainability, animal welfare, farm labor, and other issues as they arise and are mutually agreed upon for the benefit of our producers and industry to ensure that we coordinate dairy advocacy efforts in international forums and among consumers.
  10. Exchange information about the performance of the milk and dairy products market in the North America region.
  11. Continue with activities to defend common food names, particularly cheese names, thus allowing their free use in our North American market.
  12. Develop a work plan on the issues of the common agenda, with indicators and a follow-up program with scheduled meetings.

CWT Assists with 661,000 Pounds of Dairy Product Export Sales

Posted on by Khadija Gibson-White

ARLINGTON, VA – Cooperatives Working Together (CWT) member cooperatives accepted seven offers of export assistance from CWT that helped them capture sales contracts for 569,000 pounds (260 MT) of American-type cheese, 2,000 pounds (1 MT) of anhydrous milkfat and 90,000 pounds (40 MT) of whole milk powder. The product is going to customers in Asia, Central America, the Caribbean, Oceania and South America, and will be delivered from April through September 2024.

CWT-assisted member cooperative year-to-date export sales total 38.2 million pounds of American-type cheeses, 309,000 pounds of butter (82% milkfat), 769,000 pounds of anhydrous milkfat, 8.6 million pounds of whole milk powder and 3.9 million pounds of cream cheese. The products are going to 26 countries in five regions. These sales are the equivalent of 474 million pounds of milk on a milkfat basis.

Assisting CWT members through the Export Assistance program positively affects all U.S. dairy farmers and cooperatives by fostering the competitiveness of U.S. dairy products in the global marketplace and helping member cooperatives gain and maintain world market share for U.S. dairy products. As a result, the program has helped significantly expand the total demand for U.S. dairy products and the demand for U.S. farm milk that produces those products.

The amounts of dairy products and related milk volumes reflect current contracts for delivery, not completed export volumes. CWT pays export assistance to the bidders only when export and delivery of the product is verified by required documentation.

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The Cooperatives Working Together (CWT) Export Assistance program is funded by voluntary contributions from dairy cooperatives and individual dairy farmers. The money raised by their investment is being used to strengthen and stabilize the dairy farmers’ milk prices and margins