Dairy Defined: Where Dairy Terms are Done Right – a Photo Essay

This week’s Dairy Defined is a little different: It’s a multi-lingual tour of alternative beverages, coming to you from the European Union, where an oat drink is called … an oat drink.

While many EU dairy policies leave much to be desired, its approach to dairy labeling shows how it’s possible to name beverages accurately, no matter what fake-milk marketers and FDA inaction may enable in the United States. From “hirse” and “chanvre” to “amande” and “soja,” EU grocery shoppers have a wealth of plant-based beverages to choose from – and somehow those beverages manage to exist, like they do in almost the entire world, without being called milk.

Don’t believe it? Click here for proof.

NMPF Celebrates Rep. Glenn Thompson’s Election as Ranking Member of House Agriculture Committee

The National Milk Producers Federation today congratulated Representative Glenn ‘GT’ Thompson (R-PA) on being elected by his colleagues to serve as the Ranking Member of the House Agriculture Committee in the 117th Congress. Rep. Thompson is the descendant of a long line of dairy farmers and been a champion of dairy producers on the House Agriculture Committee since coming to Congress in 2009.

“We have enjoyed working with Congressman Thompson and his team for years. GT has been a vocal and effective advocate for the needs of dairy farmers in Pennsylvania and throughout the country,” said Jim Mulhern, NMPF president and CEO. “He also has a keen understanding of the need to build a vibrant rural economy to sustain a safe, abundant, and affordable food supply to nourish our country and our planet.”

During his time in Congress, Rep. Thompson has played a critical role in enacting bipartisan policies that create an effective climate for dairy farmers and their cooperatives to produce safe, healthy dairy products in an environmentally sustainable manner. As Vice Chairman of the Agriculture Committee, GT worked with his colleagues to secure much-needed dairy policy reforms, culminating in the Dairy Margin Coverage program created in the 2018 Farm Bill.

Congressman Thompson served as Chairman of the Conservation and Nutrition Subcommittees during the writing of the last two farm bills. He has championed bipartisan legislation to improve the effectiveness of farm bill conservation programs and to enhance consumption of nutritious dairy products. In addition, GT has been a vocal advocate for expanding markets for all farmers, helping to push through the US-Mexico-Canada Agreement last year.

“Congressman Thompson’s bipartisan record of achievement speaks for itself, and we are eager to work with him to build on that record as he assumes his new role,” said Mulhern. “We congratulate GT on his appointment as Ranking Member and know he will continue to be a leading voice in the House for dairy and all of agriculture.”

NMPF featured Rep. Thompson on its Dairy Defined podcast earlier this year. The full interview is available here.

Reminder: NMPF Dairy-Economy Webinar Today; DMC Brochure Available

To better inform the dairy community of what it should expect from next year’s economy as well as what risk-management options are available, the National Milk Producers Federation is offering a free webinar today at 1:30 EST to help them develop effective risk management plans that can protect them in what’s predicted to be a volatile 2021. Registration is here.

NMPF Chief Economist Peter Vitaliano will discuss the dairy price outlook for next year and the value of risk management tools, including Dairy Margin Coverage, in the webinar moderated by Chris Galen, NMPF’s Senior Vice President for Member Services. 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.

The deadline for DMC signup, as well as signups for the latest round of the Coronavirus Food Assistance Program, is Dec. 11. 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. NMPF has also produced an easy-to-digest brochure highlighting the benefits of DMC coverage and an explanation of how the program works. 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 Awarded USDA Grant to Advance On-farm Biosecurity

The National Milk Producers Federation today was awarded funding from the U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) to develop and improve biosecurity on U.S. dairy farms.  

As one of two livestock industry organizations chosen along with 16 state animal health authorities and 14 land-grant universitiesNMPF will use the $488,603 grant to implement and coordinate the Secure Milk Supply (SMS) plan and develop biosecurity program area through the National Dairy FARM Program (FARM). The FARM Animal Care program places an emphasis on biosecurity as a key element of dairy herd health and the grant funding will allow for further prioritization.  

“The dairy industry has partnered with USDA for more than a decade on the Secure Milk Supply PlanWith this new funding, we are eager to continue and expand our work on biosecurity through integration with FARM,” said Jim Mulhern, president and CEO of NMPF. We applaud USDA’s work to enhance the prevention, preparedness, detection, and response to animal diseases that threaten the viability of U.S. dairy farms.” 

The grant is funded by the 2018 Farm Bill as part of an overall strategy to help prevent animal pests and diseases from entering the U.S. and reduce the spread and impact of potential disease incursions through advance planning and preparedness. APHIS will distribute funding through the National Animal Disease Preparedness and Response Program (NADPRP) as well as the National Animal Health Laboratory Network (NAHLN) 

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 on dairy farms by partnering with stakeholders and experts including the Center for Food Security and Public Health at Iowa State University, dairy farmers, veterinarians, dairy cooperatives and processors, and state and federal animal health officials.  

October DMC Margins Above Trigger; Declines Expected in 2021

The monthly margin for October under the Dairy Margin Coverage (DMC) program increased by $1.93 per cwt from September’s margin, to $11.13 per cwt, meaning no payments to farmers for milk produced that month. Still, forecast margin declines made a compelling case for signup for the program in 2021, due by Dec. 11.

Both the milk-price and the feed-cost components of the margin formula increased in October; the milk price increase during the month, $2.30 per cwt, far outpaced the $0.57 per cwt higher feed cost. For the second month in a row, both the corn and soybean meal prices were higher by appreciable amounts in October.

As the DMC 2021 deadline approaches, futures markets continue to indicate that margins will drop below $9.50 per cwt early next year and remain well below that level through at least next summer. As this year proved, making the decision to sign up for the program based on the market outlook near the end of the enrollment period can be very misleading, and that signing up should be the default decision in any case. But for next year, the outlook further reinforces that indication, erasing any residual uncertainty about participating next year at $9.50 per cwt for the first five million pounds of production history.

The DMC information page on NMPF’s website offers a variety of educational resources to help farmers make better use of the program. NMPF also is offering dairy farmers, cooperative members and state dairy associations a free webinar at 1:30 p.m. ET on Wednesday, Dec. 2, to help them develop effective risk management plans. Participants will be able to ask questions about the year ahead and learn more about how farmers can manage their risk through expected turbulence.

NMPF Strikes Bipartisan Tone as Election Results Become Clear

NMPF congratulated President-elect Joe Biden and members of the incoming 117th Congress as election results became clear in November, pledging to work with both political parties to craft solutions to dairy and agriculture’s needs.

“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 in a Nov. 9 statement. “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 that same day elaborated its commitment to cooperation in a Dairy Defined column that acknowledged political realities while pledging to be part of their solution. “Looking at the political landscape that’s coming into focus after the 2020 elections – the most bitter and viciously fought in anyone’s memory — it’s safe to say that for at least the next two years, bipartisanship isn’t everything. It’s the only thing, as hard as that may be for some to accept at this moment,” the column said.

NMPF followed up on social media with a series of tweets congratulating dairy champions who were re-relected to Congress, keeping dairy at the front of attention in Congress as lawmakers consider coronavirus-related stimulus legislation and other agriculture-related programs.

Washington May Be Divided, But Bipartisanship Aids Dairy Gains

A bitter election season is winding down, and the shape of the Biden Administration and Congress is becoming clear. Just as clear is another political reality: Washington next year will be, if anything, more closely divided than it was before.

That places bipartisanship at a premium, as any lasting solutions to policy challenges will require cooperation from both sides of the aisle. Fortunately, dairy is well-situated to play an important role in the agreements that will be necessary to get anything done in Washington, as evidenced by the many bipartisan policy gains that bore fruit for dairy in 2020.

Consider this. At the beginning of this year, dairy prices were projected at levels sufficient to keep income-over-feed-costs margins high enough to avoid triggering payments under the Dairy Margin Coverage Program. Instead, as the coronavirus crisis seized the nation beginning in March, prices plunged, leading to emergency-milk dumping and triggering about $200 million in payments to producers who enrolled in DMC.

That assistance came about because of the 2018 farm bill, passed with the support of both parties and including a revamp of dairy risk management tools that literally paid off at an incredibly crucial time. Signup for DMC coverage in 2021 is open until Dec. 11, and with payouts projected for the first eight months of the year, it’s important that farmers take advantage of this important program. Doing so directly delivers the benefits of effective bipartisan policymaking to the farm.

On top of DMC assistance, bipartisan cooperation yielded several benefits to dairy this year that have proven crucial to farmers’ economic health. The Coronavirus Food Assistance Program (the latest round of which also has a Dec. 11 signup deadline) bolstered many farmers’ cash flows, with two rounds of payments providing disaster assistance averaging as high as $2.47 per cwt for all milk marketed in 2020 and softening the blows of pandemic disruptions for many farm families. In tandem with CFAP, the Farmers to Families Food Box program has fed those in need and kept processors in business, benefiting communities, preserving jobs and ensuring that farmers have supply chains to serve.

NMPF also helped ensure that programs implemented for small businesses nationwide worked for dairy. The Paycheck Protection Program (PPP) and COVID-19 Economic Injury Disaster Loans (EIDLs), two coronavirus-related rescue measures implemented by the Small Business Administration (SBA), initially evolved from a hope to a frustration for dairy producers, who didn’t have equitable access to the programs. Working with allies, members of Congress from both parties, and administration officials, NMPF rectified many of the hurdles to the programs, increasing dairy’s access to the small business support as the SBA programs continued.

This more than $5 billion infusion of federal aid, and ongoing improvements in their administration, has been a difference-maker for dairies across the nation. Albeit, not all our farmers received the same level of support due to issues including payment limitations, organizational structures or market volatility. Nevertheless, in a telling statistic, the pace of dairy farm consolidation appears to be slowing this year – this is counterintuitive given the disruptions farms have faced, but a tribute to the effective efforts made to help farmers weather these storms.

All of it has been the product of fruitful collaboration, from within the dairy community as we at the National Milk Producers Federation and cooperatives and dairy associations across the country together pursued policy goals, to Capitol Hill, where champions in both parties spoke out on the need for dairy initiatives, and in the administration, which implemented programs funded by a Democratic House of Representatives and a Republican Senate for the betterment of dairy.

We’ve also fostered bipartisan collaboration on trade, with lawmakers from both parties calling for action against protectionist EU practices that inhibit dairy-export growth and defending the use of common cheese names. And we’ve worked for bipartisan agreement on immigration – a promising package passed in the House nearly one year ago stalled in the Senate as coronavirus demanded attention, but renewed efforts are expected in the next Congress.

In the near term, we remain hopeful that Congress may pass another COVID-19 relief package this month, given the acute strains our health-care systems and economy are facing now and for at least the next several months. Times of crisis demand unity – and despite the tendency toward reflective naysaying about Washington, consensus is possible to achieve, as the gains of the past year have shown. NMPF is advocating for additional relief for dairy producers that reflects the losses they have suffered, no matter the size of an operation. We are also urging Congress to approve a dairy donation program that can maximize dairy consumption among food-insecure populations.

In 2021 NMPF will continue its work as an advocate for dairy producers and their cooperatives in policy decisions, with our hallmark bipartisanship giving us a seat at the table wherever, whenever, and with whomever is making important decisions affecting farmer livelihoods.

Dairy Farms Innovating Their Way to a Sustainable Future

“Innovation” is a buzzword thrown about to the point of cliché. What it is varies with the circumstance.

For tech professionals, innovation could be an updated app or a streamlined solution. For teachers, it might be the newest way to engage students remotely. For those in health care, it may be a vaccine or more-effective treatment.

On dairy farms, innovation can look like … entomological wastewater filtration and effluent subsurface drip irrigation. Neither are buzzwords. Both are examples of how dairy is innovating its way toward a more sustainable future.

Royal Dairy in Royal City, Washington, wanted to enhance its waste-management system and reduce GHG emissions. Seeking solutions, Austin Allred, owner of Royal Dairy and a member of Northwest Dairy Association, piloted and adopted the BIDA® System developed by BioFiltro. The international wastewater filtration company uses worms within a passive aerobic system to clean wastewater from the dairy for irrigation. By investing in this technology, Royal Dairy has reduced its Total Suspended Solids (TSS) by 99% and reduced total Nitrogen (TKN) by 83%. As an added benefit, it also creates a rich fertilizer from the worm castings.

Another sustainability solution is found at De Jager Dairy North and California Dairies Inc., member McRee Dairy, both near Chowchilla, California, where drip irrigation is leading toward a future of better harvests and reduced emissions.

The two dairies partnered with Israeli company Netafim and Sustainable Conservation to develop and test a sub-surface irrigation system that delivers liquid dairy cow manure as a fertilizer close to the crop’s root system. This results in needing up to 35 percent less water while maintaining or even increasing crop yields in addition to reducing irrigation-related greenhouse gas emissions by 70 percent – saving costs and building resilience against droughts projected to worsen with climate change.

Projects like these, which put in the work today to develop solutions for a better tomorrow, are only two of the many on-farm innovations taking place on dairies. For those who spend their time planting as well as milking, carbon sequestration made possible by cover cropping and conservation tillage further maximize efforts like Allred’s. From improved anaerobic digesters and technology that separates nutrients, to feed additives that reduce methane emissions, dairy farming is continuing to advance – and lead – in adoption of sustainable technologies and practices in agriculture.

And they’re efforts the industry supports, with programs like the National Dairy Farmers Assuring Responsible Management (FARM) Environmental Stewardship initiative that measures a farm’s carbon and energy footprints. The initiative equips farmers with data that helps them understand their sustainability impact and chart a course for continued progress that’s essential to ensure industry progress toward the collective 2050 environmental goals of becoming carbon neutral or better; optimizing water use; and improving water quality.

On-farm innovation on dairies may not always be as obvious as an app or a vaccine. But they’re no less real or important. Dairy farms are sites of constant innovation, with farmers embracing new methods and new measures. And their proven track record of innovation is set to grow even further.

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.”