NMPF FMMO Modernization Comments Put Farmers First

April 03, 2024

NMPF, the largest U.S. dairy-farmer organization and the industry’s premier policy voice in Washington, submitted its final, formal legal “brief” on their behalf for Federal Milk Marketing Order (FMMO) modernization to the USDA on March 29.

The NMPF brief emphasized that those farmers are the reason the system exists — and that, by law, their priorities are pre-eminent in USDA consideration of a final plan.

“Our proposed package of proposals to the Federal Milk Marketing Order align perfectly with its mission and purpose, which were designed and intended to put farmers first,” said Gregg Doud, president and CEO of NMPF. “We’ve spent nearly three years painstakingly assembling the broad consensus among dairy farmers that modernization of the system needs to succeed. Our approach is careful and comprehensive, and it benefits farmers of all regions and types of operations.”

NMPF’s proposals include:

  • Returning to the “higher of” Class I mover;
  • Discontinuing the use of barrel cheese in the protein component price formula;
  • Extending the current 30-day reporting limit to 45 days on forward priced sales on nonfat dry milk and dry whey to capture more exports sales in the USDA product price reporting;
  • Updating milk component factors for protein, other solids and nonfat solids in the Class III and Class IV skim milk price formulas;
  • Developing a process to ensure make-allowances are reviewed more frequently through legislation directing USDA to conduct mandatory plant-cost studies every two years;
  • Updating dairy product manufacturing allowances contained in the USDA milk price formulas; and
  • Updating the Class I differential price system to reflect changes in the cost of delivering bulk milk to fluid processing plants.

In contrast to proposals driven by narrow self-interest, NMPF’s package of proposals reflect its broad-based membership and consensus-driven approach, which resulted in unanimous approval from its Board of Directors last year. With that unity unbroken, Doud said he looked forward to USDA’s consideration of NMPF’s solid hearing record which was built along with its recently submitted brief, as well as the department’s recommended decision expected at the beginning of July.

“NMPF has taken seriously its role as the policy leader for U.S. dairy farmers and the cooperatives they own, and we continue to draw on the strength of our members,” he said. “Today we’ve taken another big step toward modernization. We continue to look forward to its successful conclusion.”


NMPF, FARM Respond to Avian Influenza Cases with Information, Guidance

April 03, 2024

NMPF and the FARM Program helped guide dairy farmers through an emerging biosecurity concern with timely, accurate information and industry-leading resources as the first cases of Highly Pathogenic Avian Influenza (HPAI) appeared in U.S. dairy cattle.

While the scope of bird flu in dairy is limited – a handful of cases scatted among several states – and no risk is being posed toward consumers, the new challenge has galvanized the industry toward identifying best practices in containing illness and minimizing impacts on dairy farmers and processors, with NMPF serving as a central information resource and FARM Biosecurity proving its value as an essential resource for farmers and dairy companies.

NMPF Chief Science Officer Dr. Jamie Jonker served as a leading industry expert and spokesperson shortly after the first USDA confirmation of HPAI in Texas dairy cattle March 25. Working with Senior Director of Communications Theresa Murphy, NMPF began crafting member alerts offering resources and information to farmers the previous week. Since then, NMPF has released five more alerts and created a web page dedicated to bird flu information, complementing the FARM Program’s Biosecurity page as a critical resource to manage bird flu-related challenges.

Jonker also led an April 1 NMPF member and FARM participant webinar on the topic that also featured Dr. Mark Lyons from USDA and Dr. Fred Gingrich from the American Association of Bovine Practitioners, giving the latest information on the fast-moving situation. The webinar attracted 1,380 registrants and will be followed up by more informational sessions in the future.

NMPF members and FARM Program participants with questions on HPAI should contact Dr. Jonker at jjonker@nmpf.org


February DMC Margin Gains Nearly $1/cwt Over January

April 03, 2024

The February margin under the Dairy Margin Coverage (DMC) program rose by $0.96/cwt from a month earlier to $9.44/cwt, triggering a payment of $0.06/cwt for coverage at the $9.50/cwt maximum Tier 1 level.

The rise was due to a $0.50/cwt increase in the February U.S. average all-milk price to $20.60/cwt, and a $0.46/cwt drop in the DMC feed cost formula, mostly as a result of lower corn prices.

Futures-based forecasts at the end of March indicated that DMC margins would remain mostly above the $9.50/cwt maximum Tier 1 coverage level during the remainder of the current calendar year, with possible brief dips below this level in late spring.


NMPF Secures Policy and Funding Wins in Final Ag Spending Deal

April 03, 2024

NMPF worked closely with Congress on several key provisions of a spending bill, ranging from school milk to broadband access, that were included this year’s appropriations for the USDA and FDA that President Biden signed into law March 9.

Among the law’s highlights for dairy is legislative language supporting the consumption of milk and dairy products.

  • The bill requires the U.S. Department of Agriculture to allow 1% and fat-free flavored milk to be offered at all grade levels, not just in high school, when it finalizes its upcoming school nutrition standards rulemaking;
  • It prevents the final school nutrition rule from limiting sodium, which is often added to cheese for functional purposes, in a manner more restrictive than the Target 2 sodium levels published in USDA’s 2012 school meals rule; and
  • The explanatory statement accompanying the bill directs USDA not to reduce the maximum monthly milk allowance under the Women, Infants and Children (WIC) program as it finalizes updates to the WIC foods package.

The enacted measure also funds numerous important agriculture programs. Dairy highlights include:

  • $90 million for the ReConnect program, the USDA Rural Development program working to provide broadband service to eligible rural areas;
  • $12 million for the Dairy Business Innovation Initiatives program, which provides direct technical assistance and grants to dairy businesses to further the development, production, marketing, and distribution of dairy products;
  • $10 million for the Farm and Ranch Stress Assistance Network, a USDA program aimed at connecting those working in agriculture to stress assistance and support programs; and
  • $3 million for the Healthy Fluid Milk Incentives Projects authorized in the 2018 Farm Bill to create pilot programs to increase milk consumption among SNAP households.

In addition to what the bill offers, the final bill does not include funding for Supplemental Nutrition Assistance Program (SNAP) pilot projects limited to “nutrient dense” foods as defined by the most recent Dietary Guidelines for Americans. NMPF advocated against this provision, as whole and reduced-fat (2%) milk would not have been able to be included in the pilots because the current guidelines only recommend consumption of low-fat and fat-free milk varieties.


CWT Task Force Assesses Member Export Capabilities

April 03, 2024

The task force of farmers and cooperative leaders leading the initiative to renew Cooperatives Working Together in late March issued a survey to NMPF’s members seeking data about the products they manufacture, and also feedback on the value of CWT to their organization and the broader dairy community.

The task force, formed earlier this year to consider how the CWT program should evolve in the future to better meet the needs of its members, is generating ideas to present a series of potential extensions of CWT’s current operations to the NMPF Board of Directors for approval. The survey sent to NMPF cooperatives CEOs seeks information about the type and volume of products manufactured by the membership. The resulting data will be analyzed to assess the potential for expanding the range of products that CWT supports.

Other ideas for CWT’s future activities include expanding the demand for new and different products in foreign markets and improving the collective logistics efficiencies of members’ supply chain processes. The task force will continue to meet virtually to refine these concepts and propose detailed proposals to the NMPF Board.

March CWT-Assisted Export Sales Total 9.5 Million Pounds

CWT member cooperatives secured over 70 contracts in March, adding 9.5 million pounds of product to CWT-assisted sales in 2024. In milk equivalent, this is equal to 96.9 million pounds of milk on a milkfat basis. These products will go to customers in Asia, Central America, the Caribbean, Middle East-North Africa, Oceania and South America and will be shipped from March through August 2024.

Exporting dairy products is critical to the viability of dairy farmers and their cooperatives across the country. Whether or not a cooperative is actively engaged in exporting cheese, butter, anhydrous milkfat, cream cheese, or whole milk powder, moving products into world markets is essential. CWT provides a means to move domestic dairy products to overseas markets by helping to overcome U.S. dairy’s trade disadvantages.

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


NMPF Shapes Supply Chain Policies

April 03, 2024

The House passed the bipartisan Ocean Shipping Reform Implementation Act of 2023, a key NMF trade-policy priority, on Mar. 21 by unanimous consent.

Led by Reps. Dusty Johnson, R-SD, and John Garamendi, D-CA, the legislation would update supply chain data standards, establish reciprocal trade as part of the Federal Maritime Commission’s mission in enforcing the Shipping Act, and introduce a formal process to report complaints against certain shipping exchanges. NMPF and USDEC endorsed the legislation to help provide greater supply chain transparency and reliability for dairy exporters.

The bill complements the Federal Maritime Commission’s Feb. 23 publication of its final rule on detention and demurrage billing practices, which incorporates several recommendations made by NMPF and the U.S. Dairy Export Council (USDEC).

As an important part of the Ocean Shipping Reform Act (OSRA) implementation – which NMPF championed – the final rule requires common carriers and marine terminal operators to:

  • Include specific minimum information on demurrage and detention invoices;
  • Outline certain detention and demurrage billing practices, such as determination of which parties may appropriately be billed for demurrage or detention charges; and
  • Set timeframes for issuing invoices.

NMPF Welcomes House Ag Labor Working Group Final Report, Calls for Legislative Action

April 03, 2024

NMPF lauded the House Agriculture Committee’s March 7 release of its bipartisan Agriculture Labor Working Group’s final report. The final recommendations represent the culmination of nearly nine months of discussions among working group members and stakeholders, including NMPF.

NMPF specifically commended working group members for unanimously supporting opening the H-2A agricultural visa program to dairy farmers and other year-round employers. NMPF staff had previously briefed the working group on dairy’s workforce needs and served as the dairy industry policy resource during the drafting of the group’s initial report, which was released last November.

“We commend the House Agriculture Committee and its Ag Labor Working Group for forging ahead and reaching agreement on recommendations to make badly needed reforms to our nation’s H-2A agricultural visa program,” said NMPF president and CEO Gregg Doud in a statement.  “We are especially grateful for the working group’s unanimous support for allowing dairy farmers and other year-round employers long-sought access to the program.”.

Election-year dynamics create a difficult climate for ag labor legislation, but NMPF hopes that the bipartisan consensus reached in the final report can help set the table for any possible opportunity to address dairy’s workforce concerns of accessing H-2A and protecting dairy’s current workers and their families.

“Dairy’s workforce needs remain dire, and we urge Congress to heed the Ag Labor Working Group’s strong recommendation,” said Doud.

House Agriculture Committee Chairman GT Thompson, R-PA, and Ranking Member David Scott, D-GA, formally launched the Agriculture Labor Working Group last June. Thompson and Scott deputized committee members Reps. Rick Crawford, R-AR, and Don Davis, D-NC, to spearhead the working group.

“Again, thanks to the committee and to its leadership, Chairman GT Thompson, R-PA, and Ranking Member David Scott, D-GA, as well as Working Group co-chairs Reps. Rick Crawford, R-AR, and Don Davis, D-NC, for their bipartisan leadership in this important and timely effort,” said Doud.


NMPF Presses USTR on Trade Barriers, New Markets

April 03, 2024

The U.S. Trade Representative’s (USTR) annual National Trade Estimate (NTE) report released Mar. 29 highlights several trade barrier and market access priorities that NMPF and USDEC have pointed out to the agency.

In Oct. 23 comments submitted to USTR as it developed the document, NMPF and USDEC detailed how the United States’ ongoing lack of new tariff-reducing trade agreements and uneven enforcement of existing agreements has put the U.S. dairy industry at a competitive disadvantage. The comments also summarized country-specific barriers that governments around the world are using to impede U.S. dairy exports.

Several of those nontariff barrier concerns were captured in the trade estimate as priorities for USTR, including:

  • Canada’s trade-restrictive administration of its U.S.-Mexico-Canada Agreement dairy tariff-rate-quotas,
  • Resolving Egypt’s protectionist and inconsistent Halal requirements,
  • Finding a solution for Indonesia’s facility registration delays,
  • Complex EU regulatory requirements that risk clogging trade flows.

FARM Prepares for Workforce Development Updates, Launches Sustainability Resource

April 03, 2024

The National Dairy FARM Program is preparing for version updates and new resources across multiple program areas. The FARM Workforce Development (WFD) Program made strides in March toward its evaluation tool Version 2 updates, and the FARM Environmental Stewardship (ES) Program launched a new database for sustainability resources.

The NMPF Board of Directors in March approved minor adjustments to the FARM WFD evaluation tool. The evaluation is restructured to better group questions of similar themes and contains seven additional questions to further strengthen the evaluation. The updated evaluation, FARM WFD Version 2, will launch July 1. FARM will offer updated trainings and resources for FARM evaluators and farmers who participate in the program.

The voluntary FARM WFD evaluation addresses best management practices that can enhance HR and safety management. Dairy cooperatives and processors can use the program to provide customer assurances around farm-level labor topics.

FARM ES published a comprehensive database of funding opportunities and sustainability resources for dairy producers. It was developed with support from SCS Consulting and is available for free on the FARM Program website. The library contains financial resources, including grants, cost-share, loan programs and other incentives.

Users can navigate through government, nonprofit, extension, state planning tools and other resources via filters by state, level of funding assistance, type of assistance, etc. The FARM Program will continue to incorporate new features throughout the year.