NMPF Offers Webinar on 2021 Dairy Economy as DMC Deadline Approaches

With deadlines for the Dairy Margin Coverage program and Coronavirus Food Assistance Program signups approaching on Dec. 11, the National Milk Producers Federation is offering dairy farmers, cooperative members and state dairy associations a free webinar Dec. 2 to help them develop effective risk management plans that can protect them in what’s predicted to be a volatile year in 2021.

NMPF Chief Economist Peter Vitaliano, creator of the monthly Dairy Market Report released earlier today, will be discussing the dairy price outlook for next year, and the value of risk management tools including Dairy Margin Coverage, in a webinar moderated by Chris Galen, NMPF’s Senior Vice President for Member Services, at 1:30 p.m. EST on Wednesday, Dec. 2. Participants will be able to ask questions about the year ahead and learn more about how farmers can manage their risk through expected turbulence.

The webinar will examine the milk and feed price forecast, forecast margins, and analyze how the Dairy Margin Coverage program will offer farmers protection against price volatility. To register, click here: https://us02web.zoom.us/webinar/register/WN_yr4QZ8HhSc-zdvujrg_zBA

Current USDA calculations predict that the DMC, adopted with NMPF’s leadership in the 2018 farm bill, will offer payments averaging $1.05 per cwt in the first eight months of next year for those at the maximum $9.50 coverage level. That vastly outstrips program premiums, making coverage for a farm’s first 5 million pounds of milk production a no-brainer, Vitaliano said. The DMC also offers affordable protection to all producers against price catastrophes and can be used in tandem with other risk management tools, such as the Dairy-Revenue Protection and the Livestock Gross Margin programs.

To determine the appropriate level of DMC coverage for a specific dairy operation, producers can use the recently updated online dairy decision tool offered through the USDA’s DMC informational page. Dairy producers can also visit NMPF’s page on risk management to learn more about DMC, CFAP and other tools to promote financial security for dairy operations.

NMPF Statement on EU’s Retaliatory Tariffs on Dairy

In response to the European Union’s (EU) imposition of retaliatory tariffs on U.S. agriculture exports, which escalates the dispute over World Trade Organization (WTO)-incompliant aircraft subsidies, National Milk Producers Federation President and CEO Jim Mulhern issued the following statement:

“Europe has long wielded restrictive and unjustified trade tactics to limit fair competition from U.S. agriculture, including dairy exports. While Europe may be authorized to retaliate, the U.S. has already taken deliberate action to address the WTO decision. Meanwhile, Europe has failed to come into compliance with their WTO obligations.

“As the U.S. works to hold Europe accountable to its WTO obligations, U.S. retaliatory tariffs against EU dairy products continue to play a key role in bringing Europe to the negotiating table and compelling them to fulfill their trade commitments. The EU’s restrictive trade policies that have resulted in a one-way flow of agriculture trade, and in particular dairy trade, to Europe is something that both the current and future Administrations need to keep in mind. In fact, the trade deficit between the EU and U.S. continues to widen as the EU uses unjustified trade tactics to erode U.S. market access and limit fair competition.

“One of the most egregious of these tactics is the EU’s misuse of geographical indications (GIs) to ban the U.S. from selling cheeses with common names, such as asiago, feta or parmesan. We commend USTR’s continued maintenance of GI cheeses on the WTO-authorized list of tariff retaliation as these tariffs help to temporarily level the playing field for U.S. producers.

“It’s time for Europe to not only comply with its WTO obligations, but also make a fundamental change to retire its discriminatory agricultural trade policies once and for all.”

NMPF Congratulates President-Elect Biden and Incoming Congress

The National Milk Producers Federation congratulated President-elect Joe Biden and members of the upcoming 117th Congress for their election victories, pledging to work for bipartisan solutions to the many challenges faced in agriculture and in the nation.

“Congratulations to President-elect Biden and the incoming members of the 117th Congress, who will have a lot of work to do in this country, from legislating to building common ground,” said NMPF President and CEO Jim Mulhern. “Dairy is ready to do its part and work with the administration and Congress to face difficult problems successfully, in the bipartisan spirit we have always practiced and believed in.”

NMPF has long been committed to working with both major political parties for sound, consensus-based public policy. More on NMPF’s approach to policy, why dairy farmers and the cooperatives they own possess a distinct voice within agriculture, and the crucial role they can play in the months ahead, can be found in this week’s Dairy Defined column.

Dairy Defined Podcast: How NMPF Pulled Off a Virtual Cheese Contest

The coronavirus pandemic has disrupted lives and transformed everything from schooling and shopping habits to … cheese contests. It’s not something most people think about, but in a time of social distancing and curtailed travel, how exactly does one gather, sample, compare and celebrate world-class cheeses, virtually?

This was the question National Milk Producers Federation coordinators Jamie Jonker and Miquela Hanselman set out to answer – and their solutions were cheese-tastic, to say the least. Judging conducted from multiple locations, donated storage spaces and smaller cheese blocks played their role – as did continual ingenuity from a team determined not to let a pandemic upend a cherished dairy tradition.

NMPF announced the winners of its first-ever virtual cheese contest – one believed to be the first nationwide U.S. cheese contest of the virtual era – last week. This week’s Dairy Defined Podcast tells the tale of the Cheese Contest That Could, featuring Jonker, Hanselman, and Head Cheese Judge Allison Reynolds of the USDA, facilitated by NMPF Communications Manager Theresa-Sweeney Murphy.

“I think it’s important that while we are in strange and unique times because of the pandemic, that some things still continue to happen as normal course of order,” said Jonker, NMPF’s staff scientist and a 16-year veteran of the competition. “The most rewarding part is that, unless we told people about how we did it, most people wouldn’t understand that it was any different from other years. And I think that’s a testament to the great team that we’ve got at National Milk, our cheese judges, and our co-ops that enter the cheese every year for really making it seem like nothing was different, even though everything was different.”

To listen to the full discussion, click here. You can also find this and other NMPF podcasts on Apple Podcasts, SpotifySoundCloud and Google Play. Broadcast outlets may use the MP3 file. Please attribute information to NMPF.

 

Bipartisan Congressional Letter Calls for Stronger U.S. Approach to Preserving Common Food and Wine Terms

A coalition of leading farm and agricultural groups are applauding a bipartisan letter sent today by 111 members of Congress urging stronger protections for American-made food and wine exports using common terms. This is an important message regarding the need for enhanced U.S. efforts to combat the European Union’s (EU) attempts to ban U.S. exports of cheese, meat and wine products that are labeled with common terms – such as parmesan, bologna or chateau.

“Congress has spoken loudly; it is time for stronger action by the U.S. government. For far too long, Europe has used unjustified trade barriers to block competition from high-quality American-made cheese, meat and wine exports. Europe is undermining global trade rules and weakening intellectual property system protections internationally. Today’s letter is an important reminder that we must raise the bar in our efforts in order to prevail in creating agricultural trade policy that works for the world, not just the European Union,” said Jaime Castaneda, Executive Director of Consortium for Common Food Names.

The letter asks the U.S. Trade Representative (USTR) and U.S. Department of Agriculture (USDA) to make safeguarding common food and wine terms a core policy objective in all current and future trade negotiations. The effort was led by Reps. Jim Costa (D-CA), Jodey Arrington (R-TX), Angie Craig (D-MN), Dusty Johnson (R-SD), Ron Kind (D-WI), Mike Gallagher (R-WI), Jimmy Panetta (D-CA) and Mike Kelly (R-PA).

“The EU’s ban on common cheese terms has already impeded U.S. dairy exports but even more severe consequences for our industry lie ahead if the EU is allowed to continue these unfair trade practices. Preserving export opportunities for American-made cheeses and other products labeled with common terms must take priority in all future trade negotiations. I applaud Congress and the leaders of this effort for setting this important precedent in defense of American-made exports,” said Tom Vilsack, president and CEO of U.S. Dairy Export Council.

“Creating false barriers to block exports denies families around the world the high-quality food America’s farmers and ranchers produce. It’s trade manipulation. We applaud the U.S. government for its efforts to remove unfair trade practices that keep our nation from competing in the global marketplace,” said American Farm Bureau Federation President Zippy Duvall.

“The European Union has for too long unjustifiably and erroneously attempted to restrict trade in common food name products, including meat exports from the U.S. The policy advocated in the bipartisan letter sent today to USDA and USTR will advance critical safeguards for common food name products in international trade and will enable America’s meat and poultry packers and processors, agricultural producers and food manufacturers to compete on a level playing field with their counterparts in the EU. We thank members of Congress for their leadership, and we stand ready to work with the Administration to defend against anti-competitive and protectionist policies pursued by trading partners that serve only to impede U.S. meat and poultry exports,” said Julie Anna Potts, CEO of the North American Meat Institute.

“NASDA Members work tirelessly with the federal government to open new doors for agricultural producers around the world. We encourage the U.S. Trade Representative (USTR) and U.S. Department of Agriculture (USDA) to amplify the importance of common food and wine terms as a core policy objective to successful free trade negotiations in the future. Doing so will ensure consumers are able to access the full bounties of our farmers and ranchers around the world,” said National Association of State Departments of Agriculture CEO Dr. Barb Glenn.

“America’s dairy farmers have been unduly harmed by the EU’s efforts to limit market opportunities for U.S. dairy products. For years, the EU has sought to ban high-quality American-made cheeses, putting U.S. dairy jobs at risk and limiting economic growth in the rural communities that rely on a healthy dairy industry.  I appreciate the important work being done by Congress to ensure that U.S. trade negotiators must have all necessary tools at their disposal to fight back against the EU’s destructive agenda,” said Jim Mulhern, president and CEO of National Milk Producers Federation.

“We have watched time and again as the EU has gone well beyond protecting legitimate GIs to erect trade barriers that benefit their own producers at our expense. The recent EU-China agreement on GIs is a perfect example of how the EU abuses GIs for their own gain. The U.S. must do more to ensure a level playing field for common food names, grape varietal names and traditional terms and we are grateful to these Representatives for supporting this effort,” said Bobby Koch, President and CEO of Wine Institute.

In July, 61 Senators sent a similar letter requesting that the U.S. government enhance protections for common food and wine terms.

 

U.S. Dairy Exports to Benefit from New USDA-FDA Partnership

The U.S. Department of Agriculture (USDA) and Food and Drug Administration (FDA) today signed a Memorandum of Understanding (MOU) that will establish an interagency process to further support exports of U.S. dairy products. Both agencies play critical roles in facilitating foreign sales of American-made dairy products, which is recognized and appreciated by the U.S. dairy industry. This MOU will draw upon the expertise of FDA as well as USDA’s Agricultural Marketing Service (AMS) and Foreign Agricultural Service (FAS) to deepen and streamline their work together on the issues facing dairy exports to the benefit of U.S. dairy farmers and manufacturers.

The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) worked with both agencies to advance this new approach to dairy export collaboration. NMPF and USDEC deeply appreciate the USDA and FDA’s dedication to drafting this new MOU to facilitate U.S. dairy exports and their ongoing collaboration with the dairy industry. Foreign competitors are making advances in international markets, making efforts to expand overseas opportunities for U.S. dairy critical to the long-term health of U.S. dairy farmers and processors.

“Today’s announcement of an interagency MOU on dairy trade between USDA and FDA is the result of years of conversation and efforts between stakeholders within the U.S. dairy industry and the U.S. government to establish consistent guidance on tackling the rising number of export challenges facing our industry. This MOU will help our industry continue to grow in an increasingly competitive global environment,” said Tom Vilsack, president and CEO of USDEC.

“This new partnership ensures that the staff at USDA and FDA are working together in the most efficient way possible to lower barriers for our farmer’s dairy exports. Increasing U.S. dairy exports will strengthen the health of our farmers and rural communities, which is more important than ever as America’s dairy industry faces new and unprecedented challenges. We appreciate all of the hard work from both agencies and stand ready to support the USDA and FDA’s commitment to open new doors for U.S. dairy exports,” said Jim Mulhern, president and CEO of NMPF.