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April DMC Margin Little Changed from March

Posted on by Theresa Sweeney

The April Dairy Margin Coverage Program margin was $9.60/cwt, down by $0.05/cwt from March, just above the maximum $9.50/cwt maximum Tier 1 coverage level for the second month in a row.

The April All-Milk price dropped from March by $0.10/cwt to $20.50/cwt, and the April DMC feed cost calculation dropped by $0.15/cwt, on a $11/ton lower premium alfalfa hay price. Small changes in the corn and soybean meal prices offset each other on a per hundredweight of milk basis in the formula.

Available forecasts at the end of May indicate an increasingly high likelihood that the DMC margin will remain considerably above $9.50/cwt for the rest of the year.

Bovaer Feed Additive to Enter Market After Years of NMPF Advocacy

Posted on by Theresa Sweeney

Years of NMPF efforts for dairy farmers paid off May 28 when the U.S. Food & Drug Administration announced that it’s granting Elanco the right to market its Bovaer (3-NOP) feed additive in the United States for use in lactating dairy cows after completing a multi-year review. Bovaer has a proven history of reducing enteric methane emissions in dairy cows and provides a key tool toward dairy meeting its industry Net Zero commitment.

The news came after persistent and patient – but at times aggressive — NMPF advocacy that included direct engagement with FDA, USDA, and the White House; multiple letters and comments; and numerous congressional letters, hearing questions, and staff-level outreach.

“FDA approval of Elanco’s Bovaer is another important step on U.S. dairy’s journey toward a net-zero future, one in which dairy farmers have already made great progress,” said NMPF President and CEO Gregg Doud in a statement. “Bovaer and other new technologies that reduce enteric emissions will help U.S. farmers be rewarded for participating in voluntary, producer-led sustainability initiatives, which is critical for the success of such efforts.

“Consumers around the world are demanding lower-carbon foods. Innovations such as Bovaer will help U.S. dairy farmers remain globally competitive and maintain their role as leaders in more sustainable dairy production. We thank FDA for its recognition of and support for these efforts.”

FDA’s approval of Bovaer paves the way for USDA to move forward with the fiscal year 2023 funds awarded to several NMPF member cooperatives for feed management under the Regional Conservation Partnership Program. It also highlights the importance of the FY 2024 application process, which is open until July 2. USDA’s announcement for that program is available here.

Steady Consumer Confidence, Strong Federal Backing Highlight H5N1 Response

Posted on by Theresa Sweeney

U.S. dairy farmers and their cooperatives continued adjusting to new federal rules for interstate dairy cattle movement in the second full month of response to H5N1, as FDA reaffirmed milk’s safety and consumer sales saw little effect of the outbreak on buyer behavior.

USDA on May 30 announced an $824 million investment to ensure the Animal and Plant Health Inspection Service (APHIS) can continue its work with state and local partners to identify and address cases of H5N1 in livestock and poultry. The funds will support diagnostics, field response activities, pre-movement testing requirements, surveillance and control activities, vaccine development and food safety studies.

The most recent round of assistance followed earlier federal moves to address the challenge posed by H5N1. USDA on May 10 announced new support to bolster farm biosecurity, boost worker safety and ease costs associated with testing for farms affected by H5N1. Farms affected by the virus also became eligible for indemnity payments through USDA’s Emergency Assistance for Livestock, Honey Bees and Farm-raised Fish Program. That financial assistance was expanded on May 23, helping farmers make investments to keep their herds and workers healthy and reduce the risk of virus spread.

NMPF applauded the moves, thanking USDA for effectively using its existing authority to offer necessary assistance for dairy farmers as they meet the challenges of H5N1 in dairy cattle. “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,” Gregg Doud, NMPF president and CEO said in a May 10 statement.

USDA’s announcements came as investigators identified the second and third human cases of H5N1 linked to the outbreak in dairy cattle. With more cases in cattle, and potentially more human cases, expected, NMPF is continuing communication with the entire dairy supply chain while informing its members of the latest developments and needs via member alerts, webinars and other media.

Visit www.nmpf.org/hpai for more information and a full listing of H5N1 and biosecurity-related resources.

NMPF Secures Dairy Wins in House Farm Bill

Posted on by Theresa Sweeney

The House Agriculture Committee-approved 2024 Farm Bill approved May 24 contains numerous NMPF-urged policy wins for dairy farmers, including an updated Dairy Margin Coverage Program and important support for its Federal Milk Marketing Order modernization proposal.

NMPF worked closely with House Agriculture Committee Chairman Glenn ‘GT’ Thompson, R-PA, and committee members on the bill approved on a bipartisan vote of 33-21. It now moves to the House floor for further consideration.

“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 in a statement. “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 in 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 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.

During the committee markup, two NMPF-backed amendments were offered for discussion.

  • Dusty Johnson, R-SD, with support from Representative Nick Langworthy, R-NY, offered an amendment to allow farmer-owned cooperatives with 2,500 or fewer employees to access the Rural Energy for America Program for energy efficiency projects.
  • Representative Derrick Van Orden, R-WI, offered an amendment to increase the authorization for the Dairy Business Innovation Initiatives from $20 million to $36 million. Chairman Thompson committed to collaborating with the sponsors of both amendments as the farm bill advances through the legislative process.

As House legislation advanced, Senate Agriculture Committee Chairwoman Debbie Stabenow, D-MI, released a comprehensive farm bill framework on May 1 including key dairy provisions, such as:

  • Extending the DMC program through 2029, including the option for producers to lock in their coverage and receive a 25% premium discount, while also updating production history for participating dairies to be based on the highest production year of 2021, 2022, or 2023;
  • Requiring plant cost studies every two years to provide better data to inform future make allowance conversations;
  • Supporting voluntary, producer-led conservation programs, such as the Environmental Quality Incentives Program, with dedicated funds for livestock operations and provisions supporting sustainable feed management; and
  • Protecting the use of common food names worldwide
  • Maintaining or boosting funding for key farm stress and animal health programs.

Senate Agriculture Committee Ranking Member John Boozman, R-AR, has announced plans to unveil his own farm bill framework in the coming weeks.

NMPF Statement on New Funding to Protect Livestock Health Amid H5N1 Outbreak

Posted on by Theresa Sweeney

From Gregg Doud, President and CEO, National Milk Producers Federation:

“We thank USDA for its leadership and important work with dairy farmers in meeting the challenges posed by H5N1. Collaboration and communication across all levels of government, and among all segments of the livestock industry, is critical in making sure that producers can continue to feed Americans and the world with safe, nutritious food. We look forward to working with USDA and all of dairy’s stakeholders to ensure that these challenges are met.”

Engagement Essential for Younger Producers

Posted on by Theresa Sweeney

Dairy farmers are descending on Washington next week, as NMPF’s Young Cooperators lead the organization’s annual fly-in. Hannah and Matthew Lansing, this year’s chairs for the YC Program, say policy engagement is critical to dairy’s future.

“There are so many things that affect us, but they don’t affect us in a way that we see every day,” said Matthew Lansing, who along with his wife and her family milk 1,100 cows and farm more than 5,000 acres at Blue Hill Dairy in Clinton, Iowa. said. “Keeping involved and up-to-date as much as we can and pushing for things that we need on a farm on a day-to-day basis is really key for us to propel forward into the future and be what we need to be for consumers going forward.”

You can find and subscribe to the Dairy Defined podcast on Apple Podcasts, Spotify, Google Podcasts and Amazon Music under the podcast name “Dairy Defined.” For more on the YC Program, click here.

Media outlets may use clips from the podcast on the condition of attribution to the National Milk Producers Federation.

 

NMPF Lauds FDA’s Approval of Bovaer

Posted on by Theresa Sweeney

From Gregg Doud, President and CEO, National Milk Producers Federation:

“FDA approval of Elanco’s Bovaer is another important step on U.S. dairy’s journey toward a net-zero future, one in which dairy farmers have already made great progress. Bovaer and other new technologies that reduce enteric emissions will help U.S. farmers be rewarded for participating in voluntary, producer-led sustainability initiatives, which is critical for the success of such efforts.

“Consumers around the world are demanding lower-carbon foods. Innovations such as Bovaer will help U.S. dairy farmers remain globally competitive and maintain their role as leaders in more sustainable dairy production. We thank FDA for its recognition of and support for these efforts.”

“We also commend Agriculture Secretary Tom Vilsack and his team at USDA for supporting dairy farmers as they prepare to use Bovaer on their own operations. We are grateful to the department for awarding more than $90 million to dairy farmer-owned cooperatives and partner organizations for innovative feed management under the Regional Conservation Partnership Program for fiscal year 2023. FDA’s approval of Bovaer now enables these key resources to move forward, and sets the stage for dairy to build on this first round in fiscal year 2024.”

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.